Question - During 2016, the Nicklaus Corporation participated in three treasury stock transactions:
a. On June 30, 2016, the corporation reacquires 130,000 shares for the treasury at a price of $12 per share.
b. On July 31, 2016, 15,000 treasury shares are reissued at $15 per share.
c. On September 30, 2016, 15,000 treasury shares are reissued at $10 per share.
Required:
1. Prepare journal entries to record these transactions.
2. Prepare the Nicklaus Corporation shareholders' equity section as it would appear in a balance sheet prepared at September 30, 2016. (Assume net income for the second and third quarter was $2,650,000.).