Part C

On October $1,2021,$ Nicklaus Corporation receives permission to replace its $$1$ par value common stock shares authorized,

$2,000,000$ shares issued, and $1,800,000$ shares outstanding$)$ with a new common stock issue having a $$0\mathrm{.}50$ par value. Since the new

par value is one$-$half the amount of the old, this represents a $2-$for$-1$ stock split. That is$,$ the shareholders will receive two shares of the

$$0\mathrm{.}50$ par stock in exchange for each share of the $$1$ par stock they own. The $$1$ par stock will be collected and destroyed by the

issuing corporation.

On November $1,2021,$ the Nicklaus Corporation declares a $$0\mathrm{.}04$ per share cash dividend on common stock and a $$0\mathrm{.}20$ per share

cash dividend on preferred stock. Payment is scheduled for December $1,2021,$ to shareholders of record on November $15,2021.$

On December $2,2021,$ the Nicklaus Corporation declares a $2\%$ stock dividend payable on December $28,2021,$ to shareholders of

record on December $14.$ At the date of declaration, the common stock was selling in the open market at $$12$ per share. The dividend

will result in $72,000(0\mathrm{.}023,600,000)$ additional shares being issued to shareholders.

Required:

Prepare journal entries to record the declaration and payment of these stock and cash dividends.

Prepare the December $31,2021,$ shareholders' equity section of the balance sheet for the Nicklaus Corporation. $($Assume net income

for the fourth quarter was $$2,000,000.)$

Prepare a statement of shareholders' equity for Nicklaus Corporation for $2021.$