Beach Company issued 5,000 shares of common stock (par value $2) upon conversion of 5,000 shares of preferred stock (par value $1) that was originally issued for a $500 premium. The entry would be: O Debit Convertible Preferred Stock $5,000; Paid-in Capital in excess of par -Preferred $500; Retained Earnings $4,500; and Credit Common Stock $10,000. Debit Convertible Preferred Stock $5,000%; Paid-in Capital in excess of par -Preferred $5,000%3B and Credit Common Stock $10,000. O Debit Convertible Common Stock $5,000; Paid-in Capital in excess of par -Preferred $500%3B Retained Earnings $4,500; and Credit Preferred Stock $10,000. O Debit Common Stock $10,000; Credit Convertible Preferred Stock $5,000; Paid-in Capital in excess of par -Preferred $500; and Retained Earnings $4,500.
Beach Company issued 5,000 shares of common stock (par value $2) upon conversion of 5,000 shares of preferred stock (par value $1) that was originally issued for a $500 premium. The entry would be: O Debit Convertible Preferred Stock $5,000; Paid-in Capital in excess of par -Preferred $500; Retained Earnings $4,500; and Credit Common Stock $10,000. Debit Convertible Preferred Stock $5,000%; Paid-in Capital in excess of par -Preferred $5,000%3B and Credit Common Stock $10,000. O Debit Convertible Common Stock $5,000; Paid-in Capital in excess of par -Preferred $500%3B Retained Earnings $4,500; and Credit Preferred Stock $10,000. O Debit Common Stock $10,000; Credit Convertible Preferred Stock $5,000; Paid-in Capital in excess of par -Preferred $500; and Retained Earnings $4,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Beach Company issued 5,000 shares of common stock (par value $2) upon conversion
of 5,000 shares of preferred stock (par value $1) that was originally issued for a $500
premium. The entry would be:
O Debit Convertible Preferred Stock $5,000; Paid-in Capital in excess of par -Preferred $500;
Retained Earnings $4,500; and Credit Common Stock $10,000.
Debit Convertible Preferred Stock $5,000; Paid-in Capital in excess of par -Preferred $5,000;
and Credit Common Stock $10,000.
bit Convertible Common Stock $5,000; Paid-in Capital in excess of par -Preferred $5003;
Retained Earnings $4,500; and Credit Preferred Stock $10,000.
O Debit Common Stock $10,000; Credit Convertible Preferred Stock $5,000; Paid-in Capital in
excess of par -Preferred $500; and Retained Earnings $4.500.
ASA
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