6. Nichols Inc. has the following transactions impacting its equity accounts during 2020. The number of shares of $1 par value common stock authorized is 100,000,000 and the number of shares outstanding as of January 1, 2020 is 40,000,000. The company also has 10,000 shares of 5% preferred stock with $100 par value authorized and outstanding at the beginning of the year. The preferred stock may be converted into 10 shares of common stock and was originally issued for $110 per share. Please record the following transactions: Jan 1 - Nichols issues 20,000,000 shares of common stock for $11 per share. May 1 - Repurchases 400,000 shares of common stock for $10 per share. June 1 - Sold 80,000 shares of treasury stock for $12 per share. October 1 - Nichols issues a 50% stock dividend (issued and distributed same day) December 1 - Issued 20,000 shares for land. The market price of the common stock is $13 per share. Prepare the journal entries to record each of the transactions above. What is the weighted average shares outstanding for the year

6. Nichols Inc. has the following transactions impacting its equity accounts during 2020. The number of shares of $1 par value common stock authorized is 100,000,000 and the number of shares outstanding as of January 1, 2020 is 40,000,000. The company also has 10,000 shares of 5% preferred stock with $100 par value authorized and outstanding at the beginning of the year. The preferred stock may be converted into 10 shares of common stock and was originally issued for $110 per share. Please record the following transactions: Jan 1 - Nichols issues 20,000,000 shares of common stock for $11 per share. May 1 - Repurchases 400,000 shares of common stock for $10 per share. June 1 - Sold 80,000 shares of treasury stock for $12 per share. October 1 - Nichols issues a 50% stock dividend (issued and distributed same day) December 1 - Issued 20,000 shares for land. The market price of the common stock is $13 per share. Prepare the journal entries to record each of the transactions above. What is the weighted average shares outstanding for the year

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

6. Nichols Inc. has the following transactions impacting its equity accounts during 2020. The number of shares of $1 par value common stock authorized is 100, 000, 000 and the number of shares
outstanding as of January 1, 2020 is 40,000,000. The company also has 10,000 shares of 5% preferred stock with $100 par value authorized and outstanding at the beginning of the year. The
preferred stock may be converted into 10 shares of common stock and was originally issued for $110 per share. Please record the following transactions: Jan 1 - Nichols issues 20,000,000 shares of
common stock for $11 per share. May 1 - Repurchases 400,000 shares of common stock for $10 per share. June 1 - Sold 80,000 shares of treasury stock for $12 per share. October 1 - Nichols issues
a 50% stock dividend (issued and distributed same day) December 1 - Issued 20,000 shares for land. The market price of the common stock is $13 per share. Prepare the journal entries to record
each of the transactions above. What is the weighted average shares outstanding for the year

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