Part BDuring 2021, the Nicklaus Corporation participated in three treasury stock transactions: On June 30, 2021, the corporation reacquires 150,000 shares for the treasury at a price of $14 per share.On July 31, 2021, 25,000 treasury shares are reissued at $17 per share.On September 30, 2021, 25,000 treasury shares are reissued at $12 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 $2,750,000.)

Treasury stock: Shares which are bought back by the company from the open market but not retired from the company stock is called Treasury stock. The purchase/reacquisition of issued shares from the open market, decreases the number of outstanding shares.Date Account Titles and Explanation Debit Credit June 30, 2021 Treasury Stock (150,000 shares x $14 per share) $2,100,000 Cash $2,100,000 (To record the purchase of Treasury share) July 31, 2021 Cash (25,000 shares x $17 per share) $425,000 Treasury Stock (25,000 shares x $14 per share) $350,000 Additional paid in capital - Treasury Stock $75,000 (To record the reissue of treasury shares) September 30, 2021 Cash (25,000 shares x $12 per share) $300,000 Additional paid in capital - Treasury Stock $50,000 Treasury Stock (25,000 shares x $14 per share) $350,000 (To record the reissue of treasury shares)

Answered: During 2021, the Nicklaus Corporation…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Part B
During 2021, the Nicklaus Corporation participated in three treasury stock transactions:

On June 30, 2021, the corporation reacquires 150,000 shares for the treasury at a price of $14 per share.
On July 31, 2021, 25,000 treasury shares are reissued at $17 per share.
On September 30, 2021, 25,000 treasury shares are reissued at $12 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 $2,750,000.)

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