Part A In late 2020, 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, 2021, 2,000,000 shares of the common stock are issued in exchange for cash at an average price of $15 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 $1,100,000.) Part B During 2021, the Nicklaus Corporation participated in three treasury stock transactions: a. On June 30, 2021, the corporation reacquires 200,000 shares for the treasury at a price of $17 per share. b. On July 31, 2021, 50,000 treasury shares are reissued at $20 per share. c. On September 30, 2021, 50,000 treasury shares are reissued at $15 per share. Required: 1. Prepare journal entries to record these transactions. 2. Prepare the Nicklaus 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 $2,550,000.) Part C On October 1, 2021, 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 $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. Part C quarter was $2,550,000.) September 30, On October 1, 2021, 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 $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 $0.05 per share cash dividend on common stock and a $0.21 per share cash dividend on preferred stock. Payment is scheduled for December 1, 2021, to shareholders of record on November 15, 2021. On December 2, 2021, the Nicklaus Corporation declares a 3% stock dividend payable on December 28, 2021, to shareholders of record on December 14. At the date of declaration, the common stock was selling in the open market at $15 per share. The dividend will result in 114,000 (0.03 3,800,000) 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 $2,050,000.) 3. Prepare a statement of shareholders' equity for Nicklaus Corporation for 2021. Complete this question by entering your answers in the tabs below. Required 1 Part A Required 2 Part A Required 1 Part B Required 2 Part B Required 1 Part C Required 2 Part C Required 3 Part C Prepare journal entries to record these transactions (16.00 ente Complete this question by entering your answers in the tabs below. Required 1 Part A Required 2 Part A Required 1 Part B Required 2 Part B Required 1 Part C Required 2 Part C Required 3 Part C Prepare journal entries to record these transactions. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) No Dato General Journal 1 January 02 Cash Common stock Paid-in capital excess of par, common 2 January 02 Cash Preferred stock Paid-in capital-excess of par, preferred Debit 30,000,000 Credit 2,000,000 28,000,000 30,000,000 5,000,000 25,000,000 Complete this question by entering your answers in the tabs below. Required 1 Part A Required 2 Part A Required 1 Part B Required 2 Part B Required 1 Part C Required 2 Part C Required 3 Part C Prepare the shareholders' equity section of the Nicklaus balance sheet as of March 31, 2021. (Assume net income for the first quarter 2021 was $1,100,000.) NICKLAUS CORPORATION Balance Sheet Shareholders' Equity Section March 31, 2021 Shareholders' equity Preferred stock Common stock Paid-in capital-excess of par Retained earnings Total shareholders' equity $ 5,000,000 2,000,000 53,000,000 1,100,000 $ 61,100,000 Complete this question by entering your answers in the tabs below. Required 1 Part A Required 2 Part A Required 1 Part B Required 2 Part B Required 1 Part C Required 2 Part C Required 3 Part C Prepare journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No 1 Date June 30 General Journal Treasury stock Cash Debit Credit 3,400,000 ( 3,400,000 2 July 31 Cash 1,000,000 Treasury stock 850,000 Paid-in capital-share repurchase 150,000 3 September 30 Cash Paid-in capital-share repurchase 750,000 100,000 850,000 Treasury stock Complete this question by entering your answers in the tabs below. Required 1 Part A Required 2 Part A Required 1 Part B Required 2 Part B Required 1 Part C Required 2 Part C Required 3 Part C Prepare the Nicklaus 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 $2,550,000.) NICKLAUS CORPORATION Balance Sheet - Shareholders' Equity Section September 30, 2021 Shareholders' equity Preferred stock $ 5,000,000 Common stock 2,000,000 Paid-in capital-excess of par 53,000,000 Paid-in capital - share repurchase Retained earnings $60,000,000 Less: Treasury stock Total shareholders' equity $60,000,000 Prepare journal entries to record the declaration and payment of these stock and cash dividends. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal 1 October 01 No journal entry required 2 November 01 Retained earnings Cash dividends payable, common Cash dividends payable, preferred 3 November 15 No journal entry required 4 December 01 Cash dividends payable, common 5 December 02 Cash dividends payable, preferred Cash Retained earnings Common stock dividends distributable Paid-in capital - excess of par, common 6 December 28 Common stock dividends distributable Common stock Debit Credit 190,000 1,710,000 57,000 1,653,000 Complete this question by entering your answers in the tabs below. Required 11 Part A Required 2 Part A Required 1 Part B Required 2 Part B Required 1 Part C Required 2 Part C Required 3 Part C Prepare the December 31, 2021, shareholders' equity section of the balance sheet for the Nicklaus Corporation. (Assume net Income for the fourth quarter was $2,050,000.) NICKLAUS CORPORATION Balance Sheet-Shareholders' Equity Section Shareholders' equity December 31, 2021 Preferred stock Common stock Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings $ 0 Less: Treasury stock Total shareholders' equity $ 0 Required 1 Part A Required 2 Part A Required 1 Part 8 Required 2 Part B Required 1 Part C Required 2 Part C Required 3 Part C Prepare a statement of shareholders' equity for Nicklaus Corporation for 2021. (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, 2021 ($ in thousands) Additional Jan. 2, 2021 Issuance of preferred stock Issuance of common stock Purchase of treasury stock Sale of treasury stock Net income Common cash dividends Preferred cash dividends Stock dividend Preferred Stock Common Stock Paid-in Capital Retained Earnings Treasury Stock Total Shareholders' Equity December 31, 2021 0 0