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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

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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 S12 per share. b. On July 31, 2021, 50.000 treasury shares are reissued at $15 per share. c. On September 30, 2021, 50,000 treasury shares are reissued at $10 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 $3,000,000.) Elis Transport Company acquired 1.2 million shares of stock in L&K Corporation at 544 per share. They are reported by Ellis at "fair value through net income." Ellis sold 200,000 shares at $46, received a 10% stock divi- dend, and then later in the year sold another 100,000 shares at $43. Hint: There is no entry for the stock dividend, but a new investment per share must be calculated for use later when the shares are sold. Required: Prepare journal entries to record these transactions Part A In late 2020, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of 5,000,000 shares of common stock carrying a $1 par value, and 1,000,000 shares of S5 par value, noncumulative, nonpar- ticipating preferred stock. On January 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 $20 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 $1,000,000.)

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