On October 1, 2016, Nicklaus Corporation receives permission to replace its $1 par value common stock (4,000,000 shares authorized, 2,000,000 shares issued, and 1,900,000 shares outstanding) with a new common stock issue having a $.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 $.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, 2016, the Nicklaus Corporation declares a $0.10 per share cash dividend on common stock and a $0.27 per share cash dividend on preferred stock. Payment is scheduled for December 1, 2016, to shareholders of record on November 15, 2016.

On December 2, 2016, the Nicklaus Corporation declares a 2% stock dividend payable on December 28, 2016, to shareholders of 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 (0.02 3,800,000) additional shares being issued to shareholders.

1,Prepare journal entries to record the declaration and payment of these stock and cash dividends.

Record the entry for a 2-for-1 stock split.

Record declaration of cash dividend for common shares and preferred shares.

Record the entry on date of record.

Record payment of cash dividend for common shares and preferred shares.

Record declaration of common stock dividend.

Record distribution of common stock dividend

3 Prepare a statement of shareholders' equity for Nicklaus Corporation for 2016. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) NICKLAUS CORPORATION Statement of Shareholders' Equity for the Year Ended Dec. 31, 2016 ($ in 000s) Additional Paid-in Capital Total erred Common Retained Treasury Shareholders Stock Stock Earnings Stock Equ Jan. 2, 2016 Issuance of preferred stock Issuance of common stock Purchase of treasury stock Sale of treasury stoclk Net income Common cash dividends Preferred cash dividends Stock dividend December 31, 2016