Part AIn late 2023, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of 5,000,000 shares of commonstock carrying a $1 par value, and 1,000,000 shares of $5 par value, noncumulative, nonparticipating preferred stock. On January 2,2024, 3,000,000 shares of the common stock are issued in exchange for cash at an average price of $10 per share. Also on January 2,all 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, 2024. (Assume net income for the firstquarter 2024 was $1,450,000.)Part BDuring 2024, the Nicklaus Corporation participated in three treasury stock transactions:a. On June 30, 2024, the corporation reacquires 180,000 shares for the treasury at a price of $12 per share.b. On July 31, 2024, 40,000 treasury shares are reissued at $15 per share.c. On September 30, 2024, 40,000 treasury shares are reissued at $10 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 30,2024. (Assume net income for the second and third quarter was $2,900,000.)Part COn October 1, 2024, Nicklaus Corporation receives permission to replace its $1 par value common stock (5,000,000 shares authorized,3,000,000 shares issued, and 2,900,000 shares outstanding) with a new common stock issue having a $0.50 par value. Since the newpar value is one-half the amount of the old, this represents a 2-for-1 stock split. That is, the shareholders will receive two shares of the$0.50 par stock in exchange for each share of the $1 par stock they own. The $1 par stock will be collected and destroyed by theissuing corporation)On November 1, 2024, the Nicklaus Corporation declares a $0.12 per share cash dividend on common stock and a $0.29 per sharecash 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 ofrecord on December 14. At the date of declaration, the common stock was selling in the open market at $10 per share. The dividendwill result in 116,000 (0.02 x 5,800,000) 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 netincome for the fourth quarter was $2,400,000.)3. Prepare a statement of shareholders' equity for Nicklaus Corporation for 2024.

Dear student, Since you have posted multiple questions at a time, only one question ie the questions…

Answered: Part A In late 2023, the Nicklaus…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please answer and show the solution. Thank you!
Southwestern Exposure Ltd. began operations on January 2, 2020. During the year, the following transactions affected shareholders' equity: 1. Southwestern Exposure's articles of incorporation authorize the issuance of 1,100,000 common shares, and the issuance of 115,000 preferred shares, which pay an annual dividend of $2.00 per share. 2. A total of 280,000 common shares were issued for $4 a share. 3. A total of 15,000 preferred shares were issued for $13 per share. 4. The full annual dividend on the preferred shares was declared. 5. The dividend on the preferred shares was paid. 6. A dividend of $0.10 per share was declared on the common shares but was not yet paid. The company had net income of $161,000 for the year. (Assume sales of $751,000 and total operating expenses of $590,000.) 7. 8. The dividends on the common shares were paid. 9. The closing entry for the dividends declared accounts was prepared. Prepare journal entries to record the above transactions, including the closing…
On My Own Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares of 8% preference shares, P130 par value, and 150,000 shares of ordinary shares, P70 par value. Transactions for the year were as follows: · Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash · Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair market value of P400,000 · May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment were received. How much is the legal capital at the end of the year 2021? P5,755,000 P4,225,000 P3,500,000 P4,760,000
Sunland Corporation was organized on January 1, 2022. It is authorized to issue 9,600 shares of 8%, $50 par value preference shares, and 501.500 shares of no-par ordinary shares witha stated value of $2 per share. The following share transactions were completed during the first year. Jan, 10 Issued 80,050 ordinary shares for cash at $6 per share. Mar, 1 Issued 5,930 preference shares for cash at $113 per share. Apr. 1 Issued 24,680 ordinary shares for land. The asking price of the land was $90,820; the fair value of the land was $80.050. May 1 Issued 80,050 ordinary shares for cash at $8 per share. Aug. 1 Issued 9,600 ordinary shares to attorneys in payment of their bill of $50,400 for services rendered in helping the company organize. Sept. 1 Issued 9,600 ordinary shares for cash at $10 per share. Nov. 1 Issued 1,100 preference shares for cash at $115 per share. Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when amount…
Alpesh
ABC Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares of 8% preference shares, P130 par value, and 150,000 shares of ordinary shares, P70 par value. Transactions for the year were as follows: Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair market value of P400,000 May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment were received. How much is the legal capital at the end of the year 2021?
Oriole Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2020, the company has the following stock transactions. Jan. 15 Issued 430,000 shares of stock at $6 per share. Sept. 5 Purchased 34,000 shares of treasury stock at $8 per share. Journalize the transactions for Oriole Corporation. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Cash Common Stock Pald-In Capltal In Excess of Stated Value-Common Stock >
S7.
Please help me to solve this problem
In late 2020, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of 4,000,000 shares of common stock 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 $10 per share. Also on January 2, all 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 first quarter 2021 was $1,250,000.)
Crane Ltd. began operations on January 2, 2024. During the year, the following transactions affected shareholders' equity: 1. Crane's articles of incorporation authorize the issuance of 2.5 million common shares and the issuance of 253,000 preferred shares, the latter of which pay an annual dividend of $3.0 per share. 2. A total of 303,000 common shares were issued for $6 a share, 3. A total of 35,000 preferred shares were issued for $10 per share. 4. The full annual dividend on the preferred shares was declared. 5. The dividend on the preferred shares was paid. 6. A dividend of $0.12 per share was declared on the common shares but was not yet paid. 7. The company had net income of $170,000 for the year. (Assume sales of $500,000 and total operating expenses of $330,000.) 8. The dividends on the common shares were paid. 9. The closing entry for the Dividends Declared account was prepared.
Moosonee Ltd. was incorporated as a private company on January 2, 2021, and is authorized to issue an unlimited number of common shares and $1 preferred shares. The company had the following share transactions in its first month of operations: Jan. 6 Issued 200,000 common shares for $1.50 per share. 12 Issued 50,000 common shares for $1.75 per share. 17 Issued 10,000 preferred shares for $25 per share. 18 Issued 500,000 common shares for $2 per share. 24 Repurchased 200,000 common shares at $1.90 per share. 31 Issued 10,000 common shares in exchange for $15,000 of legal services. Instructions Record the above transactions. What is the number and average cost of the preferred and common shares at the end of January? If Moosonee were a publicly traded company, how might the journal entry to record the noncash transaction on January 31 change?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS