Nicole has been financing Nicole's Getaway Spa (NGS) using equity financing. Currently, NGS has authorized 100,000 $0.25 preferred shares and 200,000 common shares. Outstanding shares include 45,000 preferred shares and 35,000 common shares. Recently the following transactions have taken place. a. NGS repurchased and cancelled 1,000 common shares for $11.50 a share. b. NGS issued 1,000 preferred shares for $13.50 a share. c. On November 12, the board of directors declared a cash dividend on each outstanding preferred share. d. The dividend was paid December 20. Required: 1. 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 NGS repurchased and cancelled 1,000 common shares for $11.50 a share. 2 NGS issued 1,000 preferred shares for $13.50 a share. 3 On November 12, the board of directors declared a cash dividend on each outstanding preferred share. 4 The dividend was paid December 20. Credit Note : = journal entry has been entered 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? Additional preferred shares Additional common shares 3. Describe the overall effect of each transaction on the assets, liabilities, and shareholders' equity of the company. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) 4. How would each transaction affect the ROE ratio? (Use + for increase, - for decrease, NE for no effect.) The 2020 annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $119.5 million in 2020. It also declared and paid dividends on common shares in the amount of $1.60 per share. During 2020 , Sneer had 1,000,000,000 common shares authorized; 387,170,300 shares had been issued. The balance in Retained Earnings was $1,550 million on December 31, 2019, and 2020 Net Income was $854 million. Required: 1. Prepare journal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not millions.) 1 Record the declaration of Dividend on preferred shares. Record the transaction 2 Record the payment of cash dividends on preferred shares. Record the transaction 3 Record the declaration of Dividend on common shares. Record the transaction 4 Record the payment of cash dividends on common Credit shares. Record the transaction Note : = journal entry has been entered 2. Using the information given above, prepare a statement of retained earnings for the year ended December 31, 2017. (Amount to be deducted should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place.)