The annual report for Malibu Beachwear reported the following transactions affecting shareholders' equity: a. Repurchased and cancelled $3.0 million common shares. b. Declared and paid cash dividends in the amount of $255.0 million. c. Issued 100 percent common stock dividend involving 224 .0 million additional shares with a total par value of $557.0 million. Required: 1. Indicate the effect (increase with ' + ', decrease with ' - ' , and increases and decrease within the accounting heads with ' +/ ') of each of these transactions on total assets, liabilities, and shareholders' equity. 2. Prepare journal entries to record each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollar not in millions) 1 Repurchased and cancelled \$3 million common shares. 2 Record the declaration of Dividend of 255 million. 3 Record the payment of cash dividends of 255 million. 4 Issued 100 percent common stock dividend involving 224 million additional shares with a total par value of $557 million. Credit Note : O= journal entry has been entered At December 31,2019 , the records of Hoffman Company reflected the following balances in the shareholders' equity accounts: Common shares: par $12 per share; 43,000 shares outstanding Preferred shares: 8 percent; par $10 per share; 6,450 shares outstanding Retained earnings: $221,500 On January 1,2020 , the board of directors was considering the distribution of a $63,500 cash dividend. No dividends were paid during 2018 and 2019. Required: Determine the total and per-share amounts that would be paid to the common shareholders and to the preferred shareholders unde two independent assumptions: 1-a. The preferred shares are non-cumulative. (Round your per share amount to 2 decimal places.) 1-b. The preferred shares are cumulative. (Round your per share amount to 2 decimal places.) 1-b. The preferred shares are cumulative. (Round your per share amount to 2 decimal places.) 2. Why were the dividends per common share less for the second assumption? The total dividend amount and dividends per share of common shares were less under the second assumption because the dividends in arrears on the preferred shares had to be fulfilled before dividends could be paid for the current year. The total dividend amount and dividends per share of common shares were less under the second assumption because the dividend rate for preferred shareholders was increased. 3. What factors would cause a more favourable dividend for the common shareholders? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) The preferred dividends were not in arrears. The total dividend distribution was increased. The preferred dividends were not cumulative. The preferred dividends were in arears. The total dividend distribution was decreased