During its first year of operations, the A. Clem Corporation entered into the following transactions relating...

 

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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 119 million common shares, $1 par per share. Required: Prepare the appropriate journal entries to record each transaction. January 9 Issued 90 million common shares for $28 per share. March 11 Issued 5,900 shares in exchange for custom-made equipment. A. Clem shares have traded recently on the stock exchange at $28 per share. Part B A new staff accountant for the A. Clem Corporation recorded the following journal entries during the second year of operations. A. Clem retires shares that it reacquires (restores their status to that of authorized but unissued shares). Date September 1 General Journal Common stock Retained earnings Cash December 1 Cash Common stock Gain on sale of previously issued shares ($ in millions) Debit Credit 4 128 132 68 Required: Prepare the journal entries that should have been recorded for each of the transactions. 2 66 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 119 million common shares, $1 par per share. Required: Prepare the appropriate journal entries to record each transaction. January 9 Issued 90 million common shares for $28 per share. March 11 Issued 5,900 shares in exchange for custom-made equipment. A. Clem shares have traded recently on the stock exchange at $28 per share. Part B A new staff accountant for the A. Clem Corporation recorded the following journal entries during the second year of operations. A. Clem retires shares that it reacquires (restores their status to that of authorized but unissued shares). Date September 1 General Journal Common stock Retained earnings Cash December 1 Cash Common stock Gain on sale of previously issued shares ($ in millions) Debit Credit 4 128 132 68 Required: Prepare the journal entries that should have been recorded for each of the transactions. 2 66

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Part A January 9 Transaction Issued 90 million common shares for 28 per share Explanation The compan... View the full answer