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 110 million common shares, $1 par per share. Required: Prepare the appropriate journal entries to record each transaction. Jan. 9 Issued 60 million common shares for $25 per share. Mar. 11 Issued 4,900 shares in exchange for custom-made equipment. McCollum's shares have traded recently on the stock exchange at $25 per share. Part B A new staff accountant for the McCollum Corporation recorded the following journal entries during the second year of operations. McCollum retires shares that it reacquires (restores their status to that of authorized but unissued shares). Date Sept. 1 Common stock Dec. 1 General Journal. Retained earnings Cash Cash Common stock Gain on sale of previously issued shares ($ in millions) Debit Credit 4 116 62 120 Complete this question by entering your answers in the tabs below. 2 60 Required: Prepare the journal entries that should have been recorded for each of the transactions.
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 110 million common shares, $1 par per share. Required: Prepare the appropriate journal entries to record each transaction. Jan. 9 Issued 60 million common shares for $25 per share. Mar. 11 Issued 4,900 shares in exchange for custom-made equipment. McCollum's shares have traded recently on the stock exchange at $25 per share. Part B A new staff accountant for the McCollum Corporation recorded the following journal entries during the second year of operations. McCollum retires shares that it reacquires (restores their status to that of authorized but unissued shares). Date Sept. 1 Common stock Dec. 1 General Journal. Retained earnings Cash Cash Common stock Gain on sale of previously issued shares ($ in millions) Debit Credit 4 116 62 120 Complete this question by entering your answers in the tabs below. 2 60 Required: Prepare the journal entries that should have been recorded for each of the transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Date
Sept. 1
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 110 million common shares, $1 par per share.
Required:
Prepare the appropriate journal entries to record each transaction.
Jan. 9 Issued 60 million common shares for $25 per share.
Mar. 11 Issued 4,900 shares in exchange for custom-made equipment. McCollum's shares have traded
recently on the stock exchange at $25 per share.
Dec. 1
saved
Part B
A new staff accountant for the McCollum Corporation recorded the following journal entries during the second year
of operations. McCollum retires shares that it reacquires (restores their status to that of authorized but unissued
shares).
General Journal
Common stock
Retained earnings
Cash
Cash
Common stock
Gain on sale of previously issued shares
($ in millions)
Debit Credit
4
116
62
Help
120
Complete this question by entering your answers in the tabs below.
Save & Exit
2
60
Required:
Prepare the journal entries that should have been recorded for each of the transactions.
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