ISSUING COMMON AND PREFERRED STOCK Tom Smith, a biochemistry professor, organized Biointernational, Inc., earlier this year.

The firm will manufacture antibiotics using gene splicing technology. Biointernational’s charter authorizes the firm to issue 50,000 shares of 10 percent, $60 par preferred stock and 75,000 shares of $12 par common stock. During the year, the firm engaged in the following transactions:

a. Issued 15,000 common shares to Tom Smith in exchange for $250,000 cash.

b. Sold 20,000 common shares to a potential customer for $13 per share.

c. Issued 2,000 shares of preferred stock to a venture capital firm for $65 per share.

d. Gave 75 shares of common stock to Susie Thomas, a local attorney, in exchange for Susie’s work in arranging for the firm’s incorporation. Susie usually charges $1,000 for an incorporation.

Required:

Prepare a journal entry for each of these transactions.