Part A
During its first year of operations, the A Clem Corporation entered into the following transactions relating to shareholders' equity. The corporation was authorized to issue million common shares, $ par per share.
Required:
Prepare the appropriate journal entries to record each transaction.
January Issued million common shares for $ per share.
March Issued shares in exchange for custommade equipment. A Clem shares have traded recently on the stock exchange at $ per share.
Part B
A new staff accountant for the A Clem Corporation recorded the following journal entries during the second year of operations. A Clem retires shares that it reacquires restores their status to that of authorized but unissued shares
tableDateGeneral Journal,table$ inDebittablemillionsCreditSeptember Common stock,Retained earnings,December tableCashCashtableGain on sale of previously issued sharestable
Required:
Prepare the journal entries that should have been recorded for each of the transactions.
