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.

1. Issued 50,000 common shares to Klaus Herrmann in exchange for $550,000 cash.
2. Sold 8,000 common shares to a potential customer for $12 per share.
3. Issued 4,000 shares of preferred stock to a venture capital firm for $85 per share.
4. 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.	Accounts ReceivableAdditional Paid-In Capital-Common StockCashCommon StockPreferred StockCash	Cash	Cash
	CashCommon StockLegal ExpensePreferred StockRetained EarningsCommon Stock	Common Stock	Common Stock
	Accounts PayableAdditional Paid-In Capital-Common StockAdditional Paid-In Capital-Preferred StockCashLegal ExpenseAdditional Paid-In Capital-Common Stock	Additional Paid-In Capital-Common Stock	Additional Paid-In Capital-Common Stock
	(Record sale of common stock)
b.	Additional Paid-In Capital-Common StockCashCommon StockPreferred StockRetained EarningsCash	Cash	Cash
	Accounts ReceivableAdditional Paid-In Capital-Preferred StockCashCommon StockPreferred StockCommon Stock	Common Stock	Common Stock
	Additional Paid-In Capital-Common StockAdditional Paid-In Capital-Preferred StockCashLegal ExpenseRetained EarningsAdditional Paid-In Capital-Common Stock	Additional Paid-In Capital-Common Stock	Additional Paid-In Capital-Common Stock
	(Record sale of common stock)
c.	Accounts PayableAdditional Paid-In Capital-Preferred StockCashCommon StockPreferred StockCash	Cash	Cash
	CashCommon StockLegal ExpensePreferred StockRetained EarningsPreferred Stock	Preferred Stock	Preferred Stock
	Additional Paid-In Capital-Common StockAdditional Paid-In Capital-Preferred StockCashCommon StockRetained EarningsAdditional Paid-In Capital-Preferred Stock	Additional Paid-In Capital-Preferred Stock	Additional Paid-In Capital-Preferred Stock
	(Record sale of preferred stock)
d.	Accounts PayableAdditional Paid-In Capital-Common StockCommon StockLegal ExpenseTreasury StockCommon Stock	Common Stock	Common Stock
	Additional Paid-In Capital-Preferred StockCashCommon StockLegal ExpensePreferred StockCash	Cash	Cash
	Additional Paid-In Capital-Common StockCashLegal ExpensePreferred StockRetained EarningsAdditional Paid-In Capital-Common Stock	Additional Paid-In Capital-Common Stock	Additional Paid-In Capital-Common Stock
	(Record sale of common stock)