Part A In late 2020, the Nacklaus Corporation was formed. The corporate chanter authorizes the issuance of 5,000,000 shares of common stock carrying a St par value and 1000,000 shares of $5 par value, noncumulative, nonparticipating preferred stock On Jonuary 2 2021 3,000,000 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 $30 per share Required: 1. Prepare journal entries to record these transactions 2. Prepare the shareholders equity section of the Nicklaus balance sheet as of March 31, 2021. Assume net income for the first quarter 2021 was $1400.000) Part B During 2021, the Nicklaus Corporation participated in three treasury stock transactions 6. On June 30, 2021, the corporation reacquires 170.000 shares for the treasury at a price of $12 per share b. On July 31, 2021,35.000 treasury shares are rescued at $15 per share c. On September 30, 2021.35.000 treasury shares are rescued at $10 per share Required: 1. Prepare journal entries to record these transactions 2. Prepare the Nickdous Corporation shareholders equity section as it would appear in a balance sheet prepared at September 30, 2021 (Assume net income for the second and third quarter was $2.850.000) Part On October 2021, Nicklaus Corporation receives permission to replace is $1 par value common stock (5,000,000 shares authorized 3,000,000 O shares sued, and 2900 000 shares outstanding with a new common stock issue having a 5050 per value. Since the new por value is one-half the amount of the old, this represents a 2 for stock split. That is the shareholders will receive two shares of the 50 50 par stock in exchange for each share of the Star stock they own The Si par stock will be collected and destroyed by the Issuing corporation On November 2021, the Nidos Corporation declares a 5011 per chore cash dividend on common stock and a 50.28 pet share cash dividend on preferred stock Payments scheduled for December 2021, to shareholders of record on November 15, 2021 On December 2 2021, the Nicklaus Corporation dectores a 15 stock dividend payable on December 28, 2021,10 Shorenolders of record on December 14. At the date of decoration, the common stock was seeing in the open market of $10 per share. The dividend will result in 58.000(001 - 5.800.000) adomonal chores being issued to shareholders Required: 1. Prepare journal entries to record the declaration and payment of these stock and cash videos 2. Prepare the December 31 2021 shareholders equity section of the balance sheet for the cus Corporation (Astume net income for the fourth quarter was $2.350.000) 3. Prepare a statement of shareholders equity for Nous Corporation for 2021 Complete this question by entering your answers in the tabs below vedt Part A Red D ed Part Red Dutc Dart Prepare jumalates 10 record these transactions, the entry
