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 $108$ million common shares, $$1$ par per share.

Required:

Prepare the appropriate journal entries to record each transaction.

January $9$ Issued $60$ million common shares for $$22$ per share. $$22$ 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$)],[$September $1,$Common stock,$2,],[-,$Retained earnings,$52,],[,$Cash,,$54],[$December $1,$Cash,$28,],[,\backslash$table$[[$Common stock$],[$Gain on sale of previously issued shares$]],,\backslash$table$[[1],[27]]]]$