PartAIn late 2020, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of 4,000,000 shares of commonstock carrying a $1 par value, and 1,000,000 shares of $5 par value, noncumulative, nonparticipating preferred stock. On January 2,2021, 2,000,000 shares of the common stock are issued in exchange for cash at an average price of $12 per share. Also on Januaryall 1,000,000 shares of preferred stock are issued at $25 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 firstquarter 2021 was $1,050,000.)Part BDuring 2021, the Nicklaus Corporation participated in three treasury stock transactions:a. On June 30, 2021, the corporation reacquires 280,000 shares for the treasury at a price of $14 per share.b. On July 31, 2021, 40,000 treasury shares are reissued at $17 per share.c. On September 30, 2021, 40,000 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 $2,500,000.)

Shareholders' equity, also known as stockholders' equity, represents the residual interest in the…

Answered: In late 2020, the Nicklaus Corporation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Halpern Corporation is authorized to issue 1,000,000 shares of $3 par value common stock. During 2021, its first year of operation, the company has the following stock transactions. Jan. 1. Paid the state $5,000 for incorporation fees Jan. 15 Issued 500,000 shares of stock at $6 per share. Jan. 30 Attorneys for the company accepted 500 shares of common stock as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value of $7,000. July 2. Issued 100,000 shares of stock for land. The land had an asking price of $900,000. The stock is currently selling on a national exchange at $8 per share. Sept. 5 Purchased 15,000 shares of common stock for the treasury at $8 per share. Dec. 6. Sold 11,000 shares of the treasury stock at $11 per share. Journalize the transactions for Halpern Corporation. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount…
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On January 5, 2020, Buffalo Corporation received a charter granting the right to issue 5,500 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 46,300 shares of $10 par value common stock. It then completed these transactions. Dec. 31 Declared a $0.25 per share cash dividend on the common stock and declared the preferred dividend. Record the journal entry for the transaction listed above.

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