Nicole has been financing Nicoles 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 53,000 preferred shares and 43,000 common shares. Recently the following transactions have taken place. a. NGS issues 1,150 preferred shares for $12 a share. b. NGS repurchases 1,150 common shares for $11 a share. c. On November 12, the board of directors declares a $0.40 cash dividend on each outstanding preferred share. d. The dividend is paid December 20.

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.)

Record the issuance of 1,150 shares of preferred stock with no par value for a price of $12 per share.

Record the purchase of 1,150 previously issued common shares for a price of $11 per share.

Record the declaration of a $0.40 cash dividend on the shares of preferred stock outstanding.

Record the payment of the cash dividend to the preferred shareholders.

If you were a common shareholder concerned about your voting rights, would you prefer Nicole to issue additional common shares or additional preferred shares?

If you were a common shareholder concerned about your voting rights, would you prefer Nicole to issue additional common shares or additional preferred shares?

Show the overall effect of each transaction on the assets, liabilities, and shareholders equity of the company. (Use + for increase, for decrease.) (Leave cell blank if there is no effect.) How would each transaction affect the ROE ratio? (Use + for increase, for decrease.) (Leave cell blank if there is no effect.)