Jeanie Wong, a biochemistry professor, organized Biogentech company early this year. The firm will manufacture...
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Jeanie Wong, a biochemistry professor, organized Biogentech company early this year. The firm will manufacture antibiotics using gene splicing technology. Biogentech's charter authorizes the firm to issue 5,000 shares of 12%, $50 par preferred stock and 100,000 shares of $10 par common stock. During the year, the firm engaged in the following transactions listed below. a. Issued 25,000 common shares to Jeanie Wong in exchange for $420,000 cash. b. Sold 10,000 common shares to a potential customer for $11 per share. c. Issued 3,000 shares of preferred stock to a venture capital firm for $52 per share. d. Gave 75 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 $900 for an incorporation. Required: Prepare a journal entry for each of these transactions. (Record sale of common stock) (Record sale of common stock) (Record sale of preferred stock)
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