Part A

During its first year of operations, the $A.$ Clem Corporation entered into the following transactions relating to shareholders' equity. The corporation was authorized to issue $116$ million common shares, $$1$ par per share.

Required:

Prepare the appropriate journal entries to record each transaction.

January $9$ Issued $80$ million common shares for $$24$ per share.

March $11$ Issued $5,600$ shares in exchange for custom$-$made equipment. A$.$ Clem shares have traded recently on the stock exchange at $$24$ per share.

Part B

A new staff accountant for the A$.$ Clem Corporation recorded the following journal entries during the second year of operations. A$.$ Clem retires shares that it reacquires $($restores their status to that of authorized but unissued shares$).$

$\backslash$table$[[$Date$,$General Journal,$($$ in millions$)],[$Debit$,$Credit$],[$September $1,$Common stock,$2,],[,$Retained earnings,$56,],[$December $1,\backslash$table$[[$Cash$],[$Cash$]],,58],[,\backslash$table$[[$Common stock$],[$Gain on sale of previously issued shares$]],30,\backslash$table$[[1],[29]]]]$

Required:

Prepare the journal entries that should have been recorded for each of the transactions.