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 106 million common shares, $1 par per share. Required: Prepare the appropriate journal entries to record each transaction.

Jan.		9		Issued 50 million common shares for $18 per share.
Mar.		11		Issued 4,500 shares in exchange for custom-made equipment. McCollums shares have traded recently on the stock exchange at $18 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	2
	Retained earnings	44
	Cash		46
Dec. 1	Cash	24
	Common stock		1
	Gain on sale of previously issued shares		23

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

Journal entry worksheet

• Record the issue of 50 million common shares for $18 per share.
• Record the issue of 4,500 shares in exchange for custom-made equipment. McCollums shares have traded recently on the stock exchange at $18 per share.

Record the stock transaction occurring on Sept. 1.

Record the stock transaction occurring on Dec. 1.