On November 1, 2024, the Nicklaus Corporation declares a $0.25 per share cash dividend on common stock and a $0.40 per share cash dividend on preferred stock. Payment is scheduled for December 1, 2024, to shareholders of record on November 15, 2024.On December 2, 2024, the Nicklaus Corporation declares a 2% stock dividend payable on December 28, 2024, to shareholders of record on December 14. At the date of declaration, the common stock was selling in the open market at $15 per share. The dividend will result in 154,000 (0.02 × 7,700,000) additional shares being issued to shareholders.**Required:**1. Prepare journal entries to record the declaration and payment of these stock and cash dividends.2. Prepare the December 31, 2024, shareholders' equity section of the balance sheet for the Nicklaus Corporation. (Assume net income for the fourth quarter was $3,000,000.)3. Prepare a statement of shareholders' equity for Nicklaus Corporation for 2024. **Educational Resource: Shareholders’ Equity Topics and Financial Statement Effects**---**Problem 18-12 (Algo) Overview**This exercise explores various shareholders' equity topics, focusing on comprehensive financial statement effects.---**Part A**In late 2023, Nicklaus Corporation was established. The corporate charter enables the issuance of 6,000,000 shares of common stock with a $1 par value, and 2,000,000 shares of $5 par value, noncumulative and nonparticipating preferred stock. On January 2, 2024, 4,000,000 shares of common stock are issued at an average price of $15 per share. Additionally, on January 2, all 2,000,000 shares of preferred stock are issued at $20 per share.**Required:**1. Prepare journal entries for these transactions.2. Prepare the shareholders’ equity section of Nicklaus’ balance sheet as of March 31, 2024. (Assume net income for Q1 2024 was $2,000,000.)---**Part B**In 2024, Nicklaus Corporation engaged in three treasury stock transactions:- **a.** On June 30, 2024, reacquired 300,000 shares at $17 per share.- **b.** On July 31, 2024, reissued 75,000 treasury shares at $20 per share.- **c.** On September 30, 2024, reissued 75,000 treasury shares at $15 per share.**Required:**1. Prepare journal entries for these transactions.2. Prepare shareholders' equity as it appears in the balance sheet on September 30, 2024. (Assume net income for Q2 and Q3 2024 was $3,500,000.)---**Part C**On October 1, 2024, Nicklaus Corporation received approval to replace its $1 par value common stock with a new issue at a $0.50 par value. With 4,000,000 shares issued and 3,850,000 shares outstanding, this represents a 2-for-1 stock split. Shareholders receive two $0.50 shares for each $1 par stock, which will be collected and destroyed by the issuing corporation.---**End of Educational Resource**

Since multiple questions have been asked, We will solve only the first question. If any particular question is required to be solved please post only that question or specify the question number.Stockholder's EquityRetained earnings plus shareholding make up the capital employed, also known as stockholders' equity, on the balance sheet. It also represents the distinction in importance between commitments and resources. Stockholders Equity is the basic accounting formula, although it may alternatively be expressed as follows: Stockholders Equity = Assets - Liabilities. Assets is the total of Noncurrent and Current Liabilities.Stockholders' equity includes both Preferred and common stock.DateTitle and explanationDebitCredit2 January, 2024Cash (4,000,000*$15)$60,000,000 Common stock (4,000,000*$1)$4,000,000 Paid-up-capital in excess of common stock (4,000,000*$14)$56,000,000(To record issuance of common stock)2 January, 2024Cash (2,000,000*$20)$40,000,000 Preferred stock (2,000,000*$5)$10,000,000 Paid-up-capital in excess of preferred stock (2,000,000*$15)$30,000,000(To record issuance of preferred stock)Common stock$4,000,000Paid-up-capital in excess of common stock$56,000,000Preferred stock$10,000,000Paid-in-capital in excess of preferred stock$30,000,000Retained earnings (Net income)$2,000,000Total stockholder's equity$102,000,000Thus, the total Stockholder's Equity will be $102,000,000.