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 $100,000,050 common shares, $1 par per share. Required: Prepare the appropriate journal entries to record each transaction. Jan. 9 Issued $50,000,000 common shares for $16 per share. Mar. 11 Issued 4,400 shares in exchange for custom-made equipment. McCollums shares have traded recently on the stock exchange at $16 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).

Date

General Journal

Debit

Credit

Jan. 12

Land

4,000,000

Paid-in capitaldonation of land

4,000,000

Sept. 1

Common stock

4,000,000

Retained earnings

164,000,000

Cash

168,000,000

Dec. 1

Cash

44,000,000

Common stock

2,000,000

Gain on sale of previously issued shares

42,000,000

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

Record the issue of 50,000,000 million common shares for $16 per share.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jan. 9

Record the issue of 4,400 shares in exchange for custom-made equipment. McCollums shares have traded recently on the stock exchange at $16 per share.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Mar. 11