Nicole has been financing Nicole's Getaway Spa (NGS) using equity financing. Currently NGS has authorized 100,000 no-par preferred shares and 200,000 $2 par common shares. Outstanding shares include 59,000 preferred shares and 49,000 common shares. Recently the following transactions have taken place. a. NGS issues 1,450 preferred shares for $12 a share. b. NGS repurchases 1,450 common shares for $11 a share. c. On November 12, the board of directors declares a $0.50 cash dividend on each outstanding preferred share. d. The dividend is paid December 20.
Nicole has been financing Nicole's Getaway Spa (NGS) using equity financing. Currently NGS has authorized 100,000 no-par preferred shares and 200,000 $2 par common shares. Outstanding shares include 59,000 preferred shares and 49,000 common shares. Recently the following transactions have taken place. a. NGS issues 1,450 preferred shares for $12 a share. b. NGS repurchases 1,450 common shares for $11 a share. c. On November 12, the board of directors declares a $0.50 cash dividend on each outstanding preferred share. d. The dividend is paid December 20.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject: acounting
![Required information
[The following information applies to the questions displayed below.]
Nicole has been financing Nicole's Getaway Spa (NGS) using equity financing. Currently NGS has authorized 100,000
no-par preferred shares and 200,000 $2 par common shares. Outstanding shares include 59,000 preferred shares
and 49,000 common shares.
Recently the following transactions have taken place.
a. NGS issues 1,450 preferred shares for $12 a share.
b. NGS repurchases 1,450 common shares for $11 a share.
c. On November 12, the board of directors declares a $0.50 cash dividend on each outstanding preferred share.
d. The dividend is paid December 20.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F472621be-5969-4a54-b52e-f83201e6e65c%2F5eaf0a77-c27f-4e8a-b519-045c749252e2%2Flrngivp_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Nicole has been financing Nicole's Getaway Spa (NGS) using equity financing. Currently NGS has authorized 100,000
no-par preferred shares and 200,000 $2 par common shares. Outstanding shares include 59,000 preferred shares
and 49,000 common shares.
Recently the following transactions have taken place.
a. NGS issues 1,450 preferred shares for $12 a share.
b. NGS repurchases 1,450 common shares for $11 a share.
c. On November 12, the board of directors declares a $0.50 cash dividend on each outstanding preferred share.
d. The dividend is paid December 20.
Transcribed Image Text:3. Show the overall effect of each transaction on the assets, liabilities, and shareholders' equity of the company. (Use + for increase, -
for decrease, and NE for no effect.)
Transaction
a.
b.
C.
d.
Assets
Balance Sheet
Liabilities
Stockholders' Equity
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