Question 6 (16 Marks) Parts A and Part B below are two independent questions.

Part A (12 marks). Dr. Smith started Biotech Inc. (BTE) on October 1, 2020. On October 1, 2020, BTE issued 100 common shares to Dr. Smith in exchange for $10,000 in cash. Also, the following events occurred in December 2020.

1. On December 1, 2020, BTE borrowed $1,200,000, 5-year loan, bearing 7% interest.
2. On December 10, 2020, BTE issued 1000 preferred Class A shares to investors for $600 each. The articles of incorporation (charter) disclosed that the Class A, non-cumulative preferred shares had a stated value of $ 250 per share.
3. On December 28, 2020, BTE declared and paid a 5% stock dividend on the common shares The market value of the common shares before the announcement of the stock dividend was

$ 250 per share.

4. On December 30, 2020, BTE paid a dividend to the common shareholders of record of $50 per share.

Required:

Please prepare the necessary journal entries for the above transactions above as well as any adjusting entries required at the year-end date December 31, 2020. Narratives are not required.