Part A

In late $2023,$ the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of $4,000,000$ shares of common stock carrying a $$1$ par value, and $1,000,000$ shares of $$5$ par value, noncumulative, nonparticipating preferred stock. On January $2,2024,2,000,000$ shares of the common stock are issued in exchange for cash at an average price of $$10$ per share. Also on January $2,$ all $1,000,000$ shares of preferred stock are issued at $$20$ per share.

Required:

Prepare journal entries to record these transactions.

Prepare the shareholders' equity section of the Nicklaus balance sheet as of March $31,2024.($Assume net income for the first quarter $2024$ was $$1,150,000.)$

Part B

During $2024,$ the Nicklaus Corporation participated in three treasury stock transactions:

On June $30,2024,$ the corporation reacquires $120,000$ shares for the treasury at a price of $$12$ per share.

On July $31,2024,10,000$ treasury shares are reissued at $$15$ per share.

On September $30,2024,10,000$ treasury shares are reissued at $$10$ per share.

Required:

Prepare journal entries to record these transactions.

Prepare the Nicklaus Corporation shareholders' equity section as it would appear in a balance sheet prepared at September $30,2024.($Assume net income for the second and third quarter was $$2,600,000.)$

Part C

On October $1,2024,$ Nicklaus Corporation receives permission to replace its $$1$ par value common stock $(4,000,000$ shares authorized, $2,000,000$ shares issued,