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 $104$ million common shares, $$1$ par per share.

Required:

Prepare the appropriate journal entries to record each transaction.

January $9$ Issued $30$ million common shares for $$15$ per share.

March $11$ Issued $4,300$ shares in exchange for custom$-$made equipment. A$.$ Clem shares have traded recently on the stock exchange at $$15$ 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,$\backslash$table$[[($$ in$],[$Debit$]],\backslash$table$[[$millions$)],[$Credit$]]],[$September $1,$Common stock,$2,],[,$Retained earnings,$118,],[$December $1,\backslash$table$[[$Cash$],[$Cash$]],,120],[,\backslash$table$[[$Gain on sale of previously issued shares$]],21,\backslash$table$[[1],[20]]]]$

Required:

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