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 105 million common shares, $1 par per share.

Required:

Prepare the appropriate journal entries to record each transaction.

January 9	Issued 50 million common shares for $16 per share.
March 11	Issued 4,400 shares in exchange for custom-made equipment. A. Clem shares have traded recently on the stock exchange at $16 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).

Date	General Journal	($ in millions)
		Debit	Credit
September 1	Common stock	4
	Retained earnings	164
	Cash		168
December 1	Cash	44
	Common stock		2
	Gain on sale of previously issued shares		42