10-82A Issuing Common and Preferred Stock Klaus Herrmann, a biochemistry professor, organized Bioproducts Inc. early this year. The firm will manufacture antibiotics using gene splicing technology. Bioproducts' charter authorizes the firm to issue 10,000 shares of 7%, $70 par preferred stock and 150,000 shares of $5 par common stock. During the year, the firm engaged in the transactions listed below. a. Issued 50,000 common shares to Klaus Herrmann in exchange for $550,000 cash. b. Sold 8,000 common shares to a potential customer for $12 per share. c. Issued 4,000 shares of preferred stock to a venture capital firm for $85 per share. d. Gave 100 shares of common stock to Margaret Robb, a local attorney, In exchange for Margaret's work in arranging for the firm's Incorporation. Margaret usually charges $1,200 for comparable work. Required: Prepare a journal entry for each of these transactions. a. Cash 550,INIO 0 Common Stock 0 250,000 Additional Paid-In Capital-Common Stock 300,000 (Record sale of common stock) b. Cash 0 X 40,000 x Common Stock 0 0 X Additional Paid-In Capital-Common Stock 0 56,000 (Record sale of common stock) C. Cash ox 280,000 X Preferred Stock 340,000 X Additional Paid-In Capital-Preferred Stock 0 60,000 (Record sale of preferred stock) d. Common Stock 1,200 0 Cash 0 500 Additional Paid-In Capital-Common Stock 0 700 (Record sale of common stock)