The information below relates to activities of Pops, Inc. in 2019. Pops starts with the following initial partners: William, Lexi, and Megan. Pops develops, manufactures and sells pharmaceuticals. Below are the transactions for the year-ended 12/31/19. Please prepare the necessary journal entries and adjusting journal entries for the following transactions assuming all amounts are paid in cash, unless otherwise stated. January 1 The corporation is formed in the State of Kentucky, with 1,000,000 shares authorized (par value = $1/share). Filing and legal fees = $70,000. On this date, William contributes equipment with a net book value of $400,000 and fair market value of $800,000. Lexi contributes land with a manufacturing facility that has a net book value of $2,000,000 and a fair market value of $ 2,400,000 ($400,000 land, $2,000,000 building). Pops plans to use the building. Megan contributes $ 1,800,000 in cash. William is issued 40,000 shares, Lexi is issued 120,000 shares and Megan is issued 90,000 shares. The fair of the stock is determined to be $20 per share on this date and all transactions have commercial substance. January 1 Pops hires a scientist, Leon, to lead the development of a new pharmaceutical, Pillex, to cure the Coronavirus (COVID-19). Upon her hire, Pops grants 50,000 stock options to her that have a strike price of $20 / share, a term of 5 years. They will fully vest on 12/31/19. On the grant day, shares of Pops are valued at $20/share, have an implied volatility of 180%, and the risk-free rate is 1.2%. February 1 As an investment, Pops purchases 5-year, 10% bonds of Ordeal Company (dated 01/01/19). They pay fair value (yield to maturity = 12%) plus accrued interest. The bonds have a face value of $500,000. The bonds pay interest semi-annually on June 30 and December 31. Pops's intent is to hold them for more than 1 year, but not to maturity