prynnie
prynnie
19.11.2019 • 
Business

Nlate 2017, the nicklaus corporation was formed. the corporate charter authorizes the issuance of 5,000,000 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, 2018, 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 $20 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, 2018. (assume net income for the first quarter 2018 was $1,000,000.)

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