Please help with answers for areas in RED** Nicole has been financing Nicole\'s

Question

Please help with answers for areas in RED**

Nicole has been financing Nicole's 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 54,000 preferred shares and 44,000 common shares. Recently the following transactions have taken place a. NGS issues 1,200 preferred shares for $11 a share. b. NGS repurchases 1,200 common shares for $10 a share c. On November 12, the board of directors declares a $0.50 cash dividend on each outstanding preferred share d. The dividend is paid December 20. Award: 2.25 out of 3.00 points 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.) Transaction General Journal Debit Credit Cash 13,200 Preferred Stock 13,200 Treasury Stock 12,000 Cash 12,000 Dividends Payable 27,600 Cash 27,600

Explanation / Answer

Debit Cash Dividend Declared / Retained Earnings 27600 (54,000+1,200)*0.50 Credit Dividend Payable 27600

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