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points Return to questionItem 8 Part A In late 2 0 2 3 , the Nicklaus Corporation was formed. The corporate charter authorizes the issuance
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Part A
In late the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of shares of common stock carrying a $ par value, and shares of $ par value, noncumulative, nonparticipating preferred stock. On January shares of the common stock are issued in exchange for cash at an average price of $ per share. Also on January all shares of preferred stock are issued at $ per share.
Required:
Prepare journal entries to record these transactions.
Prepare the shareholders' equity section of the Nicklaus balance sheet as of March Assume net income for the first quarter was $
Part B
During the Nicklaus Corporation participated in three treasury stock transactions:
On June the corporation reacquires shares for the treasury at a price of $ per share.
On July treasury shares are reissued at $ per share.
On September treasury shares are reissued at $ 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 Assume net income for the second and third quarter was $
Part C
On October Nicklaus Corporation receives permission to replace its $ par value common stock shares authorized, shares issued, and shares outstanding with a new common stock issue having a $ par value. Since the new par value is onehalf the amount of the old, this represents a for stock split. That is the shareholders will receive two shares of the $ par stock in exchange for each share of the $ par stock they own. The $ par stock will be collected and destroyed by the issuing corporation.
On November the Nicklaus Corporation declares a $ per share cash dividend on common stock and a $ per share cash dividend on preferred stock. Payment is scheduled for December to shareholders of record on November
On December the Nicklaus Corporation declares a stock dividend payable on December to shareholders of record on December At the date of declaration, the common stock was selling in the open market at $ per share. The dividend will result in times additional shares being issued to shareholders.
Required:
Prepare journal entries to record the declaration and payment of these stock and cash dividends.
Prepare the December shareholders' equity section of the balance sheet for the Nicklaus Corporation. Assume net income for the fourth quarter was $
Prepare a statement of shareholders' equity for Nicklaus Corporation for
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