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 $100,000,000 million 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 $20 per share.
Mar.		11		Issued 5,000 shares in exchange for custom-made equipment. McCollum's shares have traded recently on the stock exchange at $20 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	2,000,000
	Paid-in capitaldonation of land		2,000,000
Sept. 1	Common stock	2,000,000
	Retained earnings	48,000,000
	Cash		50,000,000
Dec. 1	Cash	26,000,000
	Common stock		1,000,000
	Gain on sale of previously issued shares		25,000,000

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