Conversion of Preferred Stock into Common StockSmith & Sons, Inc., has 20,000 shares of $100 par value, six percent preferred stock and 80,000 shares of $0.50 par value commonstock outstanding. The preferred stock is convertible into the company's common stock at a conversion rate of 1-to-20; that is, eachshare of preferred stock is convertible into 20 shares of common stock. The preferred stock had been sold for its par value whenissued. Prepare the journal entry to record the conversion of all of the company's preferred stock into common stock.General JournalRef.aPreferred StockDescriptionDebit+ $ 2,000,000 $+Common StockAdditional Paid-in-Capital in excess of par value.To record conversion of preferred stock to common stock.00Credit

The conversion of preferred stock into common stock involves preferred stockholders exchanging their…

Answered: Conversion of Preferred Stock into…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Zero Calories Company has 20,000 shares of cumulative preferred 1% stock, $50 par and 200,000 shares of $10 par common stock. The following amounts were distributed as dividends: Year Amount 20Y1 $30,000 20Y2 8,000 20Y 3 110,000 Determine the dividends per share for preferred and common stock for each year. If an answer is zero, enter '0'. Round all answers to two decimal places. Year Preferred Stock (dividends per share) Common Stock (dividends per share)
The issued share capital of Maelstrom Co is as follows: Ordinary shares of 10c each $1,000,000 8% Preferred shares of 50c each (redeemable) $500,000 In the year ended 31 October 20X2, the company has paid the preferred dividend for the year and an interim dividend of 2c per share on the ordinary shares. A final ordinary dividend of 3c per share is declared on 30 October 20X2. What is the total amount of dividends recognised in the financial statements relating to the year ended 31 October 20X2? A $580,000 B $90,000 C $130,000 D $500,000
Subject: acounting
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.
Ab. 156.
Sandpiper Company has 10,000 shares of cumulative preferred 3% stock, $50 par and 50,000 shares of $10 par common stock. The following amounts were distributed as dividends: $37,500 6,000 45,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'. Preferred Stock (dividends per share) 15,000 X 20Y1 20Y2 20Y3 20Y1 20Y2 20Y3 $ 0 X 0 X Common Stock (dividends per share) LA LA 0 X 0 0 X
Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were dıstributed as dividends: Year 1: $10,000 Year 2: 45,000 Year 3: 90,000 Determine the dividend per share for preferred and common stock for the first vear a. $0 and $0.10 O b. s0.50 and $0.10 C. $2.00 and $O
Sandpiper Company has 30,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends: Year 1 $225,000 Year 2 45,000 Year 3 270,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'. Year 1 Year 2 Year 3 Preferred stock (Dividends per share) $ $ $ Common stock (Dividends per share)
Maxville Company issues 250 shares of $50 par preferred stock and 1,000 shares of $10 par common stock in a "package" sale on December 31. Total proceeds received amount to $39,700. Required: 1. 2. Record the transaction for each independent assumption shown: The common stock has a current market value of $19 per share; the current market value of preferred stock is not known. The common stock and the preferred stock have a current market value per share of $22 and $62, respectively.
Seacrest Company has 20,000 shares of cumulative preferred 3% stock, $150 par and 50,000 shares of $10 par common stock. The following amounts were distributed as dividends: 20Y1 $135,000 20Y2 45,000 20Y3 270,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'. Preferred Stock(dividends per share) Common Stock(dividends per share) 20Y1 $ $ 20Y2 $ $ 20Y3 $ $
Maxville Company issues 250 shares of $50 par preferred stock and 1,000 shares of $10 par common stock in a “package” sale on December 31. Total proceeds received amount to $39,700. Required: Record the transaction for each independent assumption shown: 1. The common stock has a current market value of $19 per share; the current market value of preferred stock is not known. 2. The common stock and the preferred stock have a current market value per share of $22 and $62, respectively.
Please answer number 4 and 5

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