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major expansion of production facilities is necessary. Nichols plans suing 10.000 shares of $50 par preferred stock and 50,000 were previously authorized but have not yet been issued. Prepare journal entries to record all the transactions related to 1. the preferred stock 2. the common stock P15-2 Stock Rights to Shareholders Nichols Electronics Corporation LO 15.3 for its products. In order to meet this demand, a major expansion of production + Nichols Electronics Corporation has been experiencing a steadily growing demand to raise the money for this proposed expansion by issuing 10,000 shares of shares of $10 par common stock. These shares were previously authorized There are presently 200,000 shares of $10 par common stock issued and outs OSTO par common stock issued and outstanding. To maintain the pre- Current shareholders, the board of directors authorizes the issuance of stock rights to the cur rent common shareholders on March 2, 2019. The current market price of per share. Each common shareholder is to receive one stock warrant for each share he current market price of the common stock at this date is $24 additional share of common stock may be purchased at any time prior to April ve one stock warrant for each share of common stock owned. One warrants. may be purchased at any time prior to April 7, 2019, for $23 and 4 of the stock here are presently 20,000 shares of the $50 par preferred stock issued and outstanding. They were scus Toro per share on March 4. 2019. No preemptive right applies to the preferred stock Sale of the additional 10,000 shares of the preferred stock the board of directors also authorizes one stock warrant to be attached to each share of preferred stock in the new issue. One of these stock warrants allows the preferred areholder to purchase one share of $10 par common stock for $18 per share at any me - Priced shares with warrants attached are issued on March 5, 2019, at a price of 583 per share. The warrants begin trading in the market at $6 each. Required: 1. Prepare the entry to record the issuance of the common stock warrants on March 2, 2019, 2. Prepare journal entries to record the following transactions: a. The sale of the 10,000 shares of $50 par preferred stock with detachable warrants on March 5, 2019. b. The exercise on March 19, 2019, of 6,000 of the stock warrants that had been attached to the preferred stock (the common stock price is currently $24 per share and the preferred stock is selling ex rights for $79 per share). c. The exercise on April 2, 2019, of 120,000 stock warrants issued in conjunction with the preemptive right (the common stock is currently selling at $23.50 per share). d. The 4,000 stock warrants related to the preferred stock and the 80,000 stock warrants related to the pre- emptive right expire on April 6, 2019. Fixed Share Option Compensation Plan On January 1, 2019, Roswall Corporation's common stock is selling 1 1 crater compensatory share antion plan for its 6 key employees. The P15-3