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 a
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 a
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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
| 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 | |
| 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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