$6.$ Nichols Inc. has the following transactions impacting its equity accounts during $2020.$ The number of shares of $$1$ par value common stock authorized is $100,000,000$ and the number of shares outstanding as of January $1,2020$ is $40,000,000.$ The company also has $10,000$ shares of $5\%$ preferred stock with $$100$ par value authorized and outstanding at the beginning of the year. The preferred stock may be converted into $10$ shares of common stock and was originally issued for $$110$ per share.

$12$ points

Please record the following transactions:

Jan $1$ Nichols issues $20,000,000$ shares of common stock for $$11$ per share.

May $1$ Repurchases $400,000$ shares of common stock for $$10$ per share.

June $1$ Sold $80,000$ shares of treasury stock for $$12$ per share.

October $1$ Nichols issues a $50\%$ stock dividend $($issued and distributed same day$)$

December $1$ Issued $20,000$ shares for land. The market price of the common stock is $$13$ per share.

a$.$ Prepare the journal entries to record each of the transactions above.

b$.$ What is the weighted average shares outstanding for the year

Answer rating: 100% (QA)

a Journal entries to record each of the transactions Jan 1 Cash 220000000 Common Stock 20000000 Addi... View the full answer