Tempo Company received its charter on April 1, 1998, authorizing it to issue: (1) 10,000 shares of \(\$ 400\) par value, \(\$ 32\) cumulative, convertible preferred stock; (2) 10,000 shares of \(\$ 12\) cumulative no-par preferred stock having a stated value of \(\$ 20\) per share and a liquidation value of \(\$ 100\) per share; and (3) 100,000 shares of no-par common stock without a stated value.

On April 2, incorporators of the corporation acquired 50,000 shares of the common stock for cash at \(\$ 80\) per share, and 200 shares were issued to an attorney for services rendered in organizing the corporation. On April 3, the company issued all of its authorized shares of \(\$ 32\) convertible preferred stock for land valued at \(\$ 1,600,000\) and a building valued at \(\$ 4,800,000\) The property was subject to a mortgage of \(\$ 2,400,000\). On April 8 , the company issued 5,000 shares of the \(\$ 12\) preferred stock in exchange for a patent valued at \(\$ 1,040,000\). On April 10 the company issued 1,000 shares of common stock for cash at \(\$ 80\) per share.

a. Prepare general journal entries for these transactions.

b. Prepare the stockholders' equity section of the April 30,1998 , balance sheet. Assume retained earnings were \(\$ 80,000\).

c. Assume that each share of the \(\$ 32\) convertible preferred stock is convertible into six shares of common stock and that one-half of the preferred is converted on September 1, 1998. Give the required journal entry.