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 130 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 70 million common shares for $30 per share. Mar. 11 Issued 5,300 shares in exchange for custom-made equipment. McCollum's shares have traded recently on the stock exchange at $30 per share.
A new staff accountant for the McCollum Corporation recorded the following journal entries during the second year of operations. McCollum retires shares that it reacquires (restores their status to that of authorized but unissued shares).
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($ in millions)
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Date
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General Journal
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Debit
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Credit
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Jan. 12
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Land
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4
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Paid-in capital-donation of land
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4
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Sept. 1
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Common stock
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4
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Retained earnings
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136
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Cash
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140
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Dec. 1
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Cash
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72
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Common stock
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2
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Gain on sale of previously issued shares
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70
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Prepare the journal entries that should have been recorded for each of the transactions. (If no entry is required for a particular transaction, 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).)