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.

Issued 50,000 common shares to Klaus Herrmann in exchange for $550,000 cash.

Sold 8,000 common shares to a potential customer for $12 per share.

Issued 4,000 shares of preferred stock to a venture capital firm for $85 per share.

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.

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Prepare a journal entry for each of these transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.

a.
	(Record sale of common stock)
b.
	(Record sale of common stock)
c.
	(Record sale of preferred stock)
d.
	(Record sale of common stock)