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. NGS repurchased and cancelled 1,000 common shares for $11.50 a share. NGS issued 1,000 preferred shares for $13.50 a share. On November 12, 2014, the board of directors declared a cash dividend on each outstanding preferred share d. The dividend was paid December 20, 2014. Required: 1. Prepare the journal entries needed for each of the transactions. (If no entry is required for a transactionlevent, select "No journal entry required" in the first account hela.) View transaction list Journal entry worksheet 2 3 4 NGS repurchased and cancelled 1,000 common shares for $11.50 a share. Note: Enter debits before credits. Event General Journal Debit Credit No journal entry required Additional paid-in capital-common stock Additional paid-in capital-treasury Record et Cash View general journal Journal entry worksheet 1 2 3 4 NGS repurchased and cancelled 1,000 common shares for $11.50 a share, Note: Enter debits before credits. Event General Journal Debit Credit Cash Common shares Dividends declared Dividends payable Record en Preferred shares View general journal 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. Transaction Balance Sheet Liabilities Shareholder's Equity Assets 4. How would each transaction affect the ROE ratio? (Use + for increase, - for decrease, NE for no effect) Transaction ROE