CC$11-1($Algo$)$ Accounting for Equity Financing $[$LO $11-1,$ LO $11-2,$ LO $11-3,$ LO $11-4,$ LO $11-5]$

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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 $44,000$ preferred shares and $34,000$ common shares.

Recently the following transactions have taken place.

NGS issues $7$

$00$

preferred shares for $$11$ a share.

NGS repurchases $700$ common shares for $$10$ a share.

On November $12,$ the board of directors declares a $$0\mathrm{.}20$ cash dividend on each outstanding preferred share.

The dividend is paid December $20.$

CC$11-1($Algo$)$ Part $1$

Required:

Prepare the journal entries 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.$)1.$ Record the declaration of a $$0\mathrm{.}20$ cash dividend on the shares of preferred stock outstanding.