Nicole has been financing Nicole's Getaway Spa (NGS) using equity financing. Currently, NGS has authorized 100,000, $0.35 preferred shares and 200,000 common shares. Outstanding shares include 55,000 preferred shares and 45,000 common shares. Recently the following transactions have taken place. a. NGS repurchased and cancelled 1,000 common shares for $10.50 a share. b. NGS issued 1,000 preferred shares for $12.50 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.) No Event General Journal Debit Credit 1 a. Cash 10,500 Preferred shares x 10,500 2 b. x 12,500 Treasury shares Cash x 12.500 3 X 19,250 X Dividends Dividends payable 19,250 4 d. 19,250 X Dividends payable Cash 19,250 X 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.) Balance Sheet Transaction Assets Liabilities a. 0 10,500 (12,500) X Shareholder's Equity 10,500 (12,500) (19,250) b. 0 C. 0 19,250 (19,250) d. (19,250) X 0 4. How would each transaction affect the ROE ratio? (Use + for increase, for decrease, NE for no effect.) Transaction ROE a. b. + C. + d. NE