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 59,000 preferred shares and 49,000 common shares. Recently the following transactions have taken place. a. NGS issues 1,450 preferred shares for $12 a share. b. NGS repurchases 1,450 common shares for $11 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.

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 59,000 preferred shares and 49,000 common shares. Recently the following transactions have taken place. a. NGS issues 1,450 preferred shares for $12 a share. b. NGS repurchases 1,450 common shares for $11 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.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter2: Analyzing Transactions: The Accounting Equation

Section: Chapter Questions

Problem 3CE: What are the effects of the following transactions on the accounting equation? Indicate an increase...

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