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CoursHeroTranscribedText: Part A During its rst year of operations, the McCollum Corporation entered into the...

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Accounting

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CoursHeroTranscribedText: Part A During its rst year of operations, the McCollum Corporation entered into the following transactions relating to shareholders' equity. The corporation was authorized to issue 100,000,020 common shares, $1 par per share. Required: Prepare the appropriate journal entries to record each transaction. Jan. 9 Issued 40,000,000 common shares for $12 per share. Mar. 11 Issued 4,100 shares in exchange for custommade equipment. McCollum's shares have traded recently on the stock exchange at $12 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 Paidin capitaldonation of land 4,000,000 Sept. 1 Common stock 2,000,000 Retained earnings 32,000,000 Cash 34,000,000 Dec. 1 Cash 18,000,000 Common stock 1,000,000 Gain on sale of previously issued shares 17,000,000 Requhed: Prepare thejournal entries that should have been recorded for each of the transactions

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