Part A In late 2015, 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, 2016, 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 $20 per share.Part BDuring 2016, the Nicklaus Corporation participated in three treasury stock transactions:a.On June 30, 2016, the corporation reacquires 130,000 shares for the treasury at a price of $12 per share.b.On July 31, 2016, 15,000 treasury shares are reissued at $15 per share.c.On September 30, 2016, 15,000 treasury shares are reissued at $10 per share.Required:1.Prepare journal entries to record these transactions. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.) 2.Prepare the Nicklaus Corporation shareholders’ equity section as it would appear in a balance sheet prepared at September 30, 2016. (Assume net income for the second and third quarter was $2,650,000.)
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