Part A During its first year of operations, the McCollum Corporation entered into the following transactions relating to shareholders equity. The corporation was authorized to issue 115 million common shares, $1 par per share. Required: Prepare the appropriate journal entries to record each transaction. Jan. 9 Issued 80 million common shares for $22 per share. Mar. 11 Issued 5,500 shares in exchange for custom-made equipment. McCollums shares have traded recently on the stock exchange at $22 per share.

Part B A new staff accountant for the McCollum Corporation recorded the following journal entries during the second year of operations. McCollum retires shares that it reacquires (restores their status to that of authorized but unissued shares). ($ in millions) Date General Journal Debit Credit Sept. 1 Common stock 4 Retained earnings 104 Cash 108 Dec. 1 Cash 56 Common stock 2 Gain on sale of previously issued shares 54 Required: Prepare the journal entries that should have been recorded for each of the transactions.

		($ in millions)
Date	General Journal	Debit	Credit
Sept. 1	Common stock	4
	Retained earnings	104
	Cash		108
Dec. 1	Cash	56
	Common stock		2
	Gain on sale of previously issued shares		54

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

Part A:

Record the issue of 80 million common shares for $22 per share

Record the issue of 5,500 shares in exchange for custom-made equipment. McCollum's shares have traded recently on the stock exchange at $22 per share.

Part B

Record the stock transaction occurring on Sept. 1.

Record the stock transaction occurring on Dec. 1.