Part ADuring its first year of operations, the A. Clem Corporation entered into the following transactions relating to shareholders’ equity. The corporation was authorized to issue 103 million common shares, $1 par per share.Required:Prepare the appropriate journal entries to record each transaction.January 9Issued 30 million common shares for $14 per share.March 11Issued 4,200 shares in exchange for custom-made equipment. A. Clem shares have traded recently on the stock exchange at $14 per share.Part BA new staff accountant for the A. Clem Corporation recorded the following journal entries during the second year of operations. A. Clem retires shares that it reacquires (restores their status to that of authorized but unissued shares).DateGeneral Journal($ in millions)DebitCreditSeptember 1Common stock4 Retained earnings72 Cash 76December 1Cash40 Common stock 2 Gain on sale of previously issued shares 38Required:Prepare the journal entries that should have been recorded for each of the transactions. Please fast answer.

Journal entry is the first stage of the accounting process.Journal entry is used to record business…

Answered: Part A During its first year of…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...

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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 103 million common shares, $1 par per share.

Required:

Prepare the appropriate journal entries to record each transaction.

January 9	Issued 30 million common shares for $14 per share.
March 11	Issued 4,200 shares in exchange for custom-made equipment. A. Clem shares have traded recently on the stock exchange at $14 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).

Date	General Journal	($ in millions)
Debit	Credit
September 1	Common stock	4
	Retained earnings	72
	Cash		76
December 1	Cash	40
	Common stock		2
	Gain on sale of previously issued shares		38

Required:

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

Please fast answer.

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