4. How would each transaction affect the ROE ratlo? (Use-for Increase,- for decrease, NE for no effect)TransactionROEe. Nicole has been financing Nicole's Getaway Spa (NGS) using equity financing. Currently, NGS has authorized 100,000 $0.30 preferredshares 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 Journalentry required" In the first account field.)View transaction llstJournal entry worksheet2 3 4NGS repurchased and cancelled 1,000 common shares for $10 a share.Note: Enter debits before credits.EventGeneral JournalDebitCredita.Record entryClear entryVlew general Journal2 If you were a common shareholder concerned about your voting rights, would you prefer Nicole to Issue additional common sharesor additional preferred shares?O Additional preferred sharesO Additlonal common shares3. Describe the overall effect of each transaction on the assets, liabilities, and shareholders' equlty of the company. (Enter anydecreases to Assets, Llabilitles, or Stockholders' Equity with a minus sign.)Balance SheetTransactionAssetsLiabilitiesShareholder's Equitya.b.C.d.

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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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Nicole has been financing Nicole’s Getaway Spa (NGS) using equity financing. Currently NGShas authorized 100,000 no-par preferred shares and 200,000 $2 par common shares. Outstandingshares include 50,000 preferred shares and 40,000 common shares.Recently the following transactions have taken place.a. NGS issues 1,000 preferred shares for $12 a share.b. NGS repurchases 1,000 common shares for $11 a share.c. On November 12, the board of directors declares a $0.10 cash dividend on each outstanding preferred share.d. The dividend is paid December 20.Required:1. Prepare the journal entries needed for each of the transactions.2. If you were a common shareholder concerned about your voting rights, would you preferNicole to issue additional common shares or additional preferred shares? Why?3. Describe the overall effect of each transaction on the assets, liabilities, and shareholders’equity of the company. (Use 1 for increase, 2 for decrease, and NE for no effect.)4. How would each transaction…
On June 8, Carla Vista Ltd. was incorporated and issued 35,400 common shares for $354,000. On August 19, an additional 8,850 shares were issued for $106,200. On November 2, the company paid $33,984 to repurchase 3,540 common shares and on December 7 it paid $61,360 to repurchase 4,720 common shares. (a) Your answer is partially correct. Calculate the average cost of the common shares on June 8, August 19, November 2, and December 7. (Round answers to 2 decimal places, e.g. 15.25.) Average Cost June 8 Aug. 19 Nov. 2 Dec. 7 $ $ $ eTextbook and Media: 10
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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 57,000 preferred shares and 47,000 common shares. Recently the following transactions have taken place. a. NGS Issues 1,350 preferred shares for $11 a share. b. NGS repurchases 1,350 common shares for $10 a share. c. On November 12, the board of directors declares a $0.30 cash dividend on each outstanding preferred share. d. The dividend is paid December 20. 4. How would each transaction affect the ROE ratio? (Use + for Increase, - for decrease, and NE for no effect.) Transaction a. b. C. d. ROE
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2. In January 2018, the management of ABC Company concludes that it has sufficient cash to purchase some short-term investments in bonds and shares. During the year, the following transactions occurred. Feb. 1 Purchased 500 shares of DET shares for 45,000TL. Mar. 1 Purchased 600 shares of STL shares for 30,000TL. Mar.25 DET declared 0.90TL dividends per share payable on September 1. June 1 Purchased 40 1,000TL 9% CTN bonds for 60,000TL. Interest is payable semiannually on June 1 and November 1. July 1 Sold 200 shares of DET and collected totally 19,880TL. Aug. 1 Received a 1.5TL per share cash dividend on the STL shares. Sept. 1 Received cash dividend on DET shares. Oct. 1 Sold 20 CTN bonds and collected totally 25,750TL. Nov. 1 Received the semiannual interest on CTN bonds. Required: Journalize and post the transactions.
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