Homework Help is Here – Start Your Trial Now!
Business
Accounting
1ag Seu hancing Nicole's Getaway Spa (NGS) using equity financing. Currently, NGS has authorized 100,000 $0.30 preferre shares and 200,000 common shares. Outstanding shares Include 50,000 preferred shares and 40,000 common shares. Recently the following transactions have taken place. a. NGS repurchased and cancelled 1,000 common shares for $10 a share. b. NGS Issued 1,000 preferred shares for $12 a share. c. On November 12, the board of directors declared a cash dividend on each outstanding preferred share. d. The dividend was pald December 20. Required: 1. Prepare the Journal entries needed for each of the transactions (f no ent

1ag Seu hancing Nicole's Getaway Spa (NGS) using equity financing. Currently, NGS has authorized 100,000 $0.30 preferre shares and 200,000 common shares. Outstanding shares Include 50,000 preferred shares and 40,000 common shares. Recently the following transactions have taken place. a. NGS repurchased and cancelled 1,000 common shares for $10 a share. b. NGS Issued 1,000 preferred shares for $12 a share. c. On November 12, the board of directors declared a cash dividend on each outstanding preferred share. d. The dividend was pald December 20. Required: 1. Prepare the Journal entries needed for each of the transactions (f no ent

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
4. How would each transaction affect the ROE ratlo? (Use-for Increase,- for decrease, NE for no effect) Transaction ROE e.
Transcribed Image Text:4. How would each transaction affect the ROE ratlo? (Use-for Increase,- for decrease, NE for no effect) Transaction ROE e.
Nicole has been financing Nicole's Getaway Spa (NGS) using equity financing. Currently, NGS has authorized 100,000 $0.30 preferred shares and 200,000 common shares. Outstanding shares Include 50,000 preferred shares and 40,000 common shares. Recently the following transactions have taken place. a. NGS repurchased and cancelled 1,000 common shares for $10 a share. b. NGS Issued 1,000 preferred shares for $12 a share. c. On November 12, the board of directors declared a cash dividend on each outstanding preferred share. d. The dividend was pald December 20. Required: 1. Prepare the Journal entrles needed for each of the transactions. (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account field.) View transaction llst Journal entry worksheet 2 3 4 NGS repurchased and cancelled 1,000 common shares for $10 a share. Note: Enter debits before credits. Event General Journal Debit Credit a. Record entry Clear entry Vlew general Journal 2 If you were a common shareholder concerned about your voting rights, would you prefer Nicole to Issue additional common shares or additional preferred shares? O Additional preferred shares O Additlonal common shares 3. Describe the overall effect of each transaction on the assets, liabilities, and shareholders' equlty of the company. (Enter any decreases to Assets, Llabilitles, or Stockholders' Equity with a minus sign.) Balance Sheet Transaction Assets Liabilities Shareholder's Equity a. b. C. d.
Transcribed Image Text:Nicole has been financing Nicole's Getaway Spa (NGS) using equity financing. Currently, NGS has authorized 100,000 $0.30 preferred shares and 200,000 common shares. Outstanding shares Include 50,000 preferred shares and 40,000 common shares. Recently the following transactions have taken place. a. NGS repurchased and cancelled 1,000 common shares for $10 a share. b. NGS Issued 1,000 preferred shares for $12 a share. c. On November 12, the board of directors declared a cash dividend on each outstanding preferred share. d. The dividend was pald December 20. Required: 1. Prepare the Journal entrles needed for each of the transactions. (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account field.) View transaction llst Journal entry worksheet 2 3 4 NGS repurchased and cancelled 1,000 common shares for $10 a share. Note: Enter debits before credits. Event General Journal Debit Credit a. Record entry Clear entry Vlew general Journal 2 If you were a common shareholder concerned about your voting rights, would you prefer Nicole to Issue additional common shares or additional preferred shares? O Additional preferred shares O Additlonal common shares 3. Describe the overall effect of each transaction on the assets, liabilities, and shareholders' equlty of the company. (Enter any decreases to Assets, Llabilitles, or Stockholders' Equity with a minus sign.) Balance Sheet Transaction Assets Liabilities Shareholder's Equity a. b. C. d.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Double entry bookkeeping system
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS