Conversion of Preferred Stock into Common Stock Evans & Sons, Inc., has 20,000 shares of $100 par value, six percent preferred stock and 100,000 shares of $1.00 par value common stock outstanding. The preferred stock is convertible into the company’s common stock at a conversion rate of 1-to-20; that is, each share of preferred stock is convertible into 20 shares of common stock. The preferred stock had been sold for its par value when issued. Prepare the journal entry to record the conversion of all of the company’s preferred stock into common stock. General Journal Ref. Description Debit Credit a. Answer Answer Answer Answer Answer Answer Additional Paid-in-Capital in excess of par value. Answer Answer To record conversion of preferred stock to common stock.
Conversion of Preferred Stock into Common Stock Evans & Sons, Inc., has 20,000 shares of $100 par value, six percent preferred stock and 100,000 shares of $1.00 par value common stock outstanding. The preferred stock is convertible into the company’s common stock at a conversion rate of 1-to-20; that is, each share of preferred stock is convertible into 20 shares of common stock. The preferred stock had been sold for its par value when issued. Prepare the journal entry to record the conversion of all of the company’s preferred stock into common stock. General Journal Ref. Description Debit Credit a. Answer Answer Answer Answer Answer Answer Additional Paid-in-Capital in excess of par value. Answer Answer To record conversion of preferred stock to common stock.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Conversion of
Evans & Sons, Inc., has 20,000 shares of $100 par value, six percent preferred stock and 100,000 shares of $1.00 par value common stock outstanding. The preferred stock is convertible into the company’s common stock at a conversion rate of 1-to-20; that is, each share of preferred stock is convertible into 20 shares of common stock. The preferred stock had been sold for its par value when issued. Prepare the
| General Journal | |||
|---|---|---|---|
| Ref. | Description | Debit | Credit |
| a. | Answer | Answer | Answer |
| Answer | Answer | Answer | |
| Additional Paid-in-Capital in excess of par value. | Answer | Answer | |
| To record conversion of preferred stock to common stock. |
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