A company issued 24,000 shares of $49 par value common stock upon conversion of 14,000 shares of $6 par value preferred stock. The preferred stock was originally issued at $21 per share. The common stock is trading at $63 per share at the time of conversion. In the journal entry to record the conversion of the preferred stock, Retained Earnings will decrease/increase by  ? . If the conversion does not affect retained earnings, then enter 0.

Q: The stockholders' equity section of the balance sheet of the XYZ Corp. is as follows:…

A: Given, Common Stock (Before stock Split ) = $ 24,000,000 Par Value = $ 6

Q: The owners' equity accounts for Vulcano International are shown here: Common stock ($.40 par value)…

A: A 4-for-1 stock split means that a stockholder will have four (4) times as many shares as they had…

Q: Maxville Company issues 300 shares of $40 par preferred stock and 1,000 shares of $10 par common…

A: The lump sum value received for shares issued is allocated on the basis of market value.

Q: A company had stock outstanding as follows during each of its first three years of operations: 4,000…

A: Dividend is calculated on par value of share If a company is declaring dividend for both preference…

Q: A corporation purchases 89000 shares of its own $30 par common stock for $47 per share, recording it…

A: Stockholders' equity, also known as shareholders' or shareholders' equity, is the amount of assets…

Q: Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year…

A: Stock split is a situation when shares of a company are split into number of shares like one share…

Q: Datatec, Inc., had 400,000 shares of P20 par common stock and 40,000 shares of P100 par, 6%…

A: Net income is net profit after tax but before deduction of preference dividend . When preferred…

Q: Determine the dividends per share for preferred and common stock for each year. If answer is zero,…

A: Cash dividends:   The amount of cash provided by a corporation out of its distributable profits to…

Q: Beacon Corporation issued a 6 percent stock dividend on 33,000 shares of its $7 par common stock. At…

A: Accounting equation :— This equation shows how assets, liabilities and owner's equity are related to…

Q: An investor purchased 542 shares of common stock, $24 par, for $18,970. Subsequently, 111 shares…

A: A gain/loss is a situation in which the amount of proceeds is more/less than the cost. In the above…

Q: A company issued 18,000 shares of $25 par value common stock upon conversion of 27,000 shares of $35…

A: The organization can raise funds for the operation song integrity by issuing common stock, preferred…

Q: A corporation, which had 25,400 shares of common stock outstanding, declared a 4-for-1 stock split.…

A: Stock split refers to one of the ways that the company uses to increase the number of shares issued…

Q: A corporation, which had 24,100 shares of common stock outstanding, declared a 5-for-1 stock split.…

A: Stock split is one of the method in which one share of the company is divided or split into multiple…

Q: Assume that a company paid $6 per share to purchase 1,100 shares of its $3 par common stock as…

A: Shares which are bought back by the company from the open market but not retired from the company…

Q: Sabas Company has 20,000 shares of $100 par, 1% noncumulative preferred stock and 100,000 shares of…

A:

Q: An investor purchased 690 shares of common stock, $21 par, for $29,670. Subsequently, 102 shares…

A: The treasury stock includes the own shares of the company purchased from the sale of treasury…

Q: Swilley Furniture Company has 50,000 shares of cumulative preferred 2% stock, $75 par, and 100,000…

A:

Q: A company with 106,000 authorized shares of s8 par common stock issued 50,000 shares at $16.…

A: The stock dividend is the dividend paid in the form of shares instead of cash.

Q: Waterway Corporation has 41,500 shares of $10 par value common stock outstanding. It declares a 15%…

A: The dividend is declared to the shareholders from the retained earnings of the business. The stock…

Q: A corporation that had 26,200 shares of common stock outstanding declared a 5-for-1 stock split. a.…

A: Journal entry is a primary entry that records the financial transactions initially. The transactions…

Q: An investor purchased 567 shares of common stock, $23 par, for $23,814. Subsequently, 116 shares…

A: Sale proceeds of shares  116 shares*$31 per share 3596 Less: Cost of shares (23814*116)/567 4872…

Q: Ayayai Corporation issued 2,000 shares of $10 par value common stock upon conversion of 1,000 shares…

A: Solution:- Preparation of journal entries as follows under:- Introduction:- The convertible shares…

Q: he C Corp. sold 1,000 shares of $700 par, 5%, Convertible Preferred Stock for $103. The preferred…

A: Journal entry is the part of book keeping.

Q: Seacrest Company has 30,000 shares of cumulative preferred 3% stock, $150 par and 50,000 shares of…

A: The dividend per share is calculated as total dividend divided by the number of shares outstanding.…

Q: Pro-Builders Corporation has 242,000 shares of $30 par common stock outstanding. On September 2,…

A: INTRODUCTION Dividend is distribution of company’s profit and it is paid in the form of cash or…

Q: Maxville Company issues 300 shares of $50 par preferred stock and 1,000 shares of $10 par common…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Marin Inc. issues 9.900 shares of $100 par value preferred stock for cash at $110 per share.…

A: The preferred stock seems to be a type of shareholding which has a greater seniority claim on a…

Q: Red Market Corporation has 370,000 shares of $27 par common stock outstanding. On June 8, Red Market…

A: Solution:- Journal entries in the books of Red Market Corporation

Q: A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9.…

A: Stock dividend means issue of shares instead of giving cash dividend. It also called as…

Q: A company issued for $78 per share, 17 shares of $43 par value convertible preferred stock. One…

A: Retained Earnings - It is surplus income generated by the company, after making payment of dividend…

Q: nator of the increment or of Diluted EPS is?

A: DEPS= Earnings availble for Equity shareholders + Savings in earnings or interest due to conversion…

Q: Windborn Company has 15,000 shares of cumulative preferred 1% stock, $50 par and 50,000 shares of…

A: Par value per preferred share Dividend rate Dividend per preferred share Number of…

Q: Oceanic Company has 20,000 shares of cumulative preferred 3% stock, $150 par and 50,000 shares of $5…

A: Dividend -A dividend is the portion of profits and retained earnings that a business gives to its…

Q: A corporation, which had 36,700 shares of common stock outstanding, declared a 5-for-1 stock split.…

A: The stock split increases the number of the shares outstanding. The stock split decreases the par…

Q: Sandpiper Company has 25,000 shares of cumulative preferred 3% stock, $100 par and 50,000 shares of…

A: Cumulative preferred stock means that if the company fails to pay dividends in any given period, the…

Q: Windborn Company has 25,000 shares of cumulative preferred 3% stock, $50 par and 50,000 shares of…

A: Dividend distribution is a method of distributing profit among the company's shareholders.The…

Q: Throughout the year, Baker Construction Company had3 million shares of common stock and 150,000…

A: Convertible preference share are those preferences shares which carry a right to be converted into…

Q: An investor purchased 499 shares of common stock, $24 par, for $21,457. Subsequently, 117 shares…

A: First, find out the purchase price of 1 share. Purchase price per share = Total Purchased price /…

Q: A company had stock outstanding as follows during each of its first three years of operations: 1,000…

A: Cumulative Preferred Stock :— It is a type of preferred stock in which any past arrear of dividend…

Q: Cullumber Corporation issued 11,500 shares of $2 par value common stock upon conversion of…

A: Adjusting journal entry: At year end when company finalise its accounts then any unrecognized income…

Q: Zero Calories Company has 20,000 shares of cumulative preferred 1% stock, $50 par and 200,000 shares…

A: Cumulative Preferred Stock is one of the type of preference shares in which it is mandatory for…

Q: A company had stock outstanding as follows during each of its first three years of operations: 3,000…

A: Dividend - The dividend is the amount distributed by the organization to the shareholders of the…

Q: A company has 10,000 shares of $10 par common stock outstanding. Prepare entries to record the…

A: The journal keeps the record of the transactions on regular basis. The treasury stock includes the…

Q: To expand operations, Aragon Consulting issued 1,000 shares of previously unissued common stock with…

A: Journal entries are the primary step in the process of recording financial transactions in the…

Q: Which of the following amounts would impact the numerator in a diluted EPS calculation given the…

A: Lets understand the basics. There are two type of EPS are there which are, (1) Basic EPS (2) Diluted…