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 $114$ million common shares, $$1$ par per share.

Required:

Prepare the appropriate journal entries to record each transaction.

January $9$ Issued $70$ million common shares for $$20$ per share.

March $11$ Issued $5,400$ shares in exchange for custom$-$made equipment. A$,$ Clem shares have traded recently on the stock exchange at $$20$ 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$).$

Required:

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

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$7$ of $10$

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