Prepare the shareholders equity section of the nicklaus

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Reference no: EM132841266

In late 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.

Problem 1: Prepare journal entries to record these transactions.

Problem 2: Prepare the shareholders' equity section of the Nicklaus balance sheet as of March 31, 2018.

Reference no: EM132841266

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