No Journal Entry Required
Corrections:
- "Nicole's" is possessive, so it should have an apostrophe: "Nicole’s"
- "no-par" and "$2 par" should not have spaces: "no-par" and "$2 par"
- "shares" should be singular when referring to a specific number: "950 preferred share" and "950 common share"
- "On November 12" should not have a comma: "On November 12"
- "cash dividend" should not have a space: "cashdividend"
- "December 20" should not have a comma: "December 20"
- The formatting of the text is inconsistent with the use of "No Journal Entry Required" in the first account field. It should be consistent with the rest of the text.
Corrected Text:
Required information
CC11-1 (Algo) Accounting for Equity Financing [LO 11-1, LO 11-2, LO 11-3, LO 11-4, LO 11-5]
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[The following information applies to the questions displayed below.]
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 49,000 preferred shares and 39,000 common shares.
Recently the following transactions have taken place.
NGS issues 950 preferred share for $13 a share.
NGS repurchases 950 common share for $12 a share.
On November 12, the board of directors declares a cashdividend of $0.20 on each outstanding preferred share.
The dividend is paid December 20.
CC11-1 (Algo) Part 1
Required:
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.)