• Nichols Inc. has the following transactions impacting its equity accounts during 2018. The number of shares of $1 par value common stock authorized is 50,000,000 and the number of shares outstanding as of January 1, 2018 is 20,000,000. The company also has 10,000 shares of 6% preferred stock with $100 par value authorized and outstanding at the beginning of the year. The preferred stock may be converted into 10 shares of common stock and was originally issued for $110 per share.

  Please record the following transactions:

  Jan 1 Nichols issues 2,000,000 shares of common stock for $11 per share.

  May 1 Repurchases 200,000 shares of common stock for $10 per share.

  June 1 Sold 50,000 shares of treasury stock for $12 per share.

  October 1 Nichols declares a two-for-one (2-for-1) stock split.

  December 1 Issued 20,000 shares for land. The market price of the common stock is $13 per share.

• Prepare the journal entries to record each of the transactions above.

• What is the weighted average shares outstanding for the year