Accounting Help Please

Posted on 2014-04-11 13:16:00 in Accounting by K G

I need help with this question

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 44,000 preferred shares and 34,000 common shares.



Recently the following transactions have taken place.

a. NGS issues 700 preferred shares for $11 a share.



Preferred Stock 7700

Cash 7770

?b. NGS repurchases 700 common shares for $10 a share.

Common Stock 7000

Cash 7000

?c. On November 12, 2014, the board of directors declared a $0.20 cash dividend on each outstanding preferred share.

not sure

d. The dividend is paid December 20, 2014.

not sure



so parts c and d im not sure how to do



Then it says how to parts a-d affect the Balance Sheet for the Assets= Liablities + Stockholders Equity



so

A. -7700= 0+ 7700

B. -7000= 0 + 7000



parts C and D I dont know



then it asks how do parts A-D affect the ROE ratio



I'm not sure about this, can someone please explain it

Thanks!

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