Part A

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.

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.)($Be sure to use proper format. A

plain calculation is not sufficient$)$