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. On November 1, 2021, the Nicklaus Corporation declares a $0.08 per share cash dividend on common stock and a $0.24 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 2% 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 $10 per share. The dividend will result in 76,000 (0.02 3,800,000) additional shares being issued to shareholders.

Prepare the shareholders' equity section of the Nicklaus balance sheet as of March 31, 2021. (Assume net income for the first quarter 2021 was $1,250,000.)

NICKLAUS CORPORATION
Balance Sheet - Shareholders' Equity Section
March 31, 2021
Shareholders' equity
Common stocks	$2,000,000
Preferred stock	5,000,000
Paid-in capital - excess of par	38,000,000
Retained earnings	1,250,000
Total shareholders' equity	$46,250,000

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 $2,700,000.)

NICKLAUS CORPORATION
Balance Sheet - Shareholders' Equity Section
September 30, 2021
Shareholders' equity
Common stock	$2,000,000
Preferred stock	5,000,000
Paid-in capital - excess of par	38,000,000
Retained earnings	3,950,000
Paid-in capital - share repurchase	20,000
	$48,970,000
Less: Treasury stock	1,200,000
Total shareholders' equity	$47,770,000

Prepare the December 31, 2021, shareholders' equity section of the balance sheet for the Nicklaus Corporation. (Assume net income for the fourth quarter was $2,200,000.)

NICKLAUS CORPORATION
Balance Sheet - Shareholders' Equity Section
December 31, 2021
Shareholders' equity
	$0
Total shareholders' equity	$0

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			Total
	Preferred	Common	Paid-in	Retained	Treasury	Shareholders'
	Stock	Stock	Capital	Earnings	Stock	Equity
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
December 31, 2021	0	0	0	0	0	0