Problem 18-1 Various stock transactions; correction of journal entries [LO18-4]

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 190 million common shares, $1 par per share.

Required:

Prepare the appropriate journal entries to record each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

Jan. 9	Issued 60 million common shares for $24 per share.
Mar. 11	Issued 4,800 shares in exchange for custom-made equipment. McCollums shares have traded recently on the stock exchange at $24 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
Jan. 12	Land	4
	Paid-in capitaldonation of land		4
Sept. 1	Common stock	4
	Retained earnings	112
	Cash		116
Dec. 1	Cash	60
	Common stock		2
	Gain on sale of previously issued shares		58

Required:

Prepare the journal entries that should have been recorded for each of the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)