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JOURNAL ENTRIES NEEDED Record the entry for the 2-for-1 stock split - October 1 Record declaration of cash dividend for common shares and preferred shares
JOURNAL ENTRIES NEEDED
- Record the entry for the 2-for-1 stock split - October 1
- Record declaration of cash dividend for common shares and preferred shares - November 1
- Record the entry on date of record - November 15
- Record payment of cash dividend for common shares and preferred shares - December 1
- Record declaration of common stock dividend - December 2
- Record distribution of common stock dividend - December 28
PLEASE USE VALUES FROM SHAREHOLDERS EQUITY SECTION 3RD QUARTER TO ADD ONTO THE AMOUNTS FOR THE 4TH QUARTER
On October 1,2021 , Nicklaus Corporation receives permission to replace its $1 par value common stock (6,000,000 shares authorized, 4,000,000 shares issued, and 3,800,000 shares outstanding) with a new common stock issue having a $0.50 par value. Since the new par value is one-half the amount of the old, this represents a 2-for-1 stock split. That is, the shareholders will receive two shares of the $0.50 par stock in exchange for each share of the $1 par stock they own. The $1 par stock will be collected and destroyed by the issuing corporation. On November 1, 2021, the Nicklaus Corporation declares a $0.21 per share cash dividend on common stock and a $0.38 per share cash dividend on preferred stock. Payment is scheduled for December 1,2021 , to shareholders of 15,2021 . On December 2, 2021, the Nicklaus Corporation declares a 1\% stock dividend payable on 2021 , to shareh record on December 14 . At the date of declaration, the common stock was selling in the open market at $10 per share. The dividend will result in 76,000(0.017,600,000) additional shares being issued to shareholders. Required: 1. Prepare journal entries to record the declaration and payment of these stock and cash dividends. 2. Prepare the December 31,2021 , shareholders' equity section of the balance sheet for the Nicklaus Corporation. (Assume net income for the fourth quarter was $2,900,000.) 3. Prepare a statement of shareholders' equity for Nicklaus Corporation for 2021. Prepare the December 31,2021 , shareholders' equity section of the balance sheet for the Nicklaus Corporation. (Assume net income for the fourth quarter was $2,900,000.)Step by Step Solution
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