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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 100 million common shares, $1 par per share.
Required:
Prepare the appropriate journal entries to record each transaction.
Jan. 9 Issued 40 million common shares for $20 per share.
Mar. 11 Issued 5,000 shares in exchange for custom-made equipment. McCollum’s shares have traded recently on the stock exchange at $20 per share.
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