1.During its first year of operations, the McCollum Corporation entered into the following transactions relating to shareholders' equity. The corporation was authorized to issue 170 million common shares, $1 par per share.
Required:
Prepare the appropriate journal entries to record each transaction. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
Jan. 9 Issued 80 million common shares for $25 per share.
Mar. 11 Issued 5,700 shares in exchange for custom-made equipment. McCollum's shares have traded recently on the stock exchange at $25 per share.
Record entry to common stock and Record the entry of related to the issued equipment.
2. Penne Pharmaceuticals sold 12 million shares of its $5 par common stock to provide funds for research and development.
If the issue price is $16 per share, what is the journal entry to record the sale of the shares? (If no entry is required for an 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).
Record the sale of the shares.
3.
Lewelling Company issued 102,000 shares of its $1 par common stock to the Michael Morgan law firm as compensation for 4,200 hours of legal services performed. Morgan's usual rate is $110 per hour.
By what amount should Lewelling's paid-in capital-excess of par increase as a result of this transaction?