1. Record the isue of 40 million common shares for $20 per share..

2. Record the issue of 5,000 shares in exchange for custom-made equipment. McCollums shares have traded recently on the sctock exchange at $20 per share.

3. Record the donation of land

4. Record the stock transaction occurring on Sept, 1

5. Record the stock transaction occurring on Dec, 1

Problem 18-1 Various stock transactions; correction of journal entries [LO18-4] Part A During its first year of operations, the McCollum Corporation entered into the following transactions relating to shareholders' equity The corporation was authorized to issue $100,000,000 million common shares, $1 par per share Required Prepare the appropriate journal entries to record each transaction. an. 9 Issued 40,600,000 common shares for $20 per share. Mar. 11 Issued 5,000 shares in exchange for custom-made equipment. McCollum's shares have traded recently on the stock exchange at $20 per share. Part B A new staff accountant for the McCollum Corporation recorded the following journal entries during the second year of operations retires shares that it reacquires (restores their status to that of authorized but unissued shares Date Jan. 12 Land General Journal Debit 2,000,889 Credit Paid-in capital-donation of land 2,000,800 Sept. 1 Common stock 2,800,00e 48,000,eee Retained earnings Cash 50,00e,ee0 Dec. 1 Cash 26,0e0,eee 1,000,00e 25,8e0,0e0 Common stock Gain on sale of previously issued shares Required: Prepare the journal entries that should have been recorded for each of the transactions