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'To be solved by AjKaushal' Please help Part...

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'To be solved by AjKaushal' Please help Part B During 2013, the Nicklaus Corporation participated in three treasury stock transactions: a. On June 30, 2013, the corporation reacquires 200,000 shares for the treasury at a price of $12 per share. b. On July 31, 2013, 50,000 treasury shares are reissued at $15 per share. c. On September 30, 2013, 50,000 treasury shares are reissued at $10 per share. 2.Prepare the Nicklaus Corporation shareholders' equity section as it would appear in a balance sheet prepared at September 30, 2013. (Assume net income for the second and third quarter was $3,000,000.) (Enter your answers in whole dollars.) Part C:On October 1, 2013, 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 $.50 par value. Since the new par 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 $.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 the issuing corporation. On November 1, 2013, the Nicklaus Corporation declares a $0.05 per share cash dividend on common stock and a $0.25 per share cash dividend on preferred stock. Payment is scheduled for December 1, 2013, to shareholders of record on November 15, 2013. On December 2, 2013, the Nicklaus Corporation declares a 1% stock dividend payable on December 28, 2013, to shareholders of record on December 14. At the date of declaration, the common stock was selling in the open market at $10 per share. The dividend will result in 58,000 (0.01 ? 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. Note: Dividends are not paid on shares held in the treasury. Cash dividends are paid only on the 5,800,000 common shares outstanding. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) 2. Prepare the December 31, 2013, shareholders' equity section of the balance sheet for the Nicklaus Corporation. (Assume net income for the fourth quarter was $2,500,000.) (Enter your answers in whole dollars.) 3. Prepare a statement of shareholders' equity for Nicklaus Corporation for 2013. (Enter your answers in thousands.)

 

Paper#4366 | Written in 18-Jul-2015

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