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Exercise 15-9 Blue Corporation has 8,200 shares of $100 par value, 7% , preferred stock and 46,200 shares of $10 par value common stock outstanding at December 31, 2017. Answer the questions in each of the following independent situations. (a) If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2014, what are the dividends in arrears at December 31, 2017? Amount of dividends in arrears $ How should these dividends be reported? The cumulative dividend is as a liability. (b) If the preferred stock is convertible into 7 shares of $10 par value common stock and 3,300 shares are converted, what entry is required for the conversion assuming the preferred stock was issued at par value? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit

Exercise 15-9 Blue Corporation has 8,200 shares of $100 par value, 7% , preferred stock and 46,200 shares of $10 par value common stock outstanding at December 31, 2017. Answer the questions in each of the following independent situations. (a) If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2014, what are the dividends in arrears at December 31, 2017? Amount of dividends in arrears $ How should these dividends be reported? The cumulative dividend is as a liability. (b) If the preferred stock is convertible into 7 shares of $10 par value common stock and 3,300 shares are converted, what entry is required for the conversion assuming the preferred stock was issued at par value? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING
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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(c) If the preferred stock was issued at $105 per share, how should the preferred stock be reported in the stockholders' equity section? (Enter account name only and do not provide descriptive information.) SHOW LIST OF ACCOUNTS Blue Corporation Balance Sheet (Partial) LINK TO TEXT LINK TO TEXT
Transcribed Image Text:(c) If the preferred stock was issued at $105 per share, how should the preferred stock be reported in the stockholders' equity section? (Enter account name only and do not provide descriptive information.) SHOW LIST OF ACCOUNTS Blue Corporation Balance Sheet (Partial) LINK TO TEXT LINK TO TEXT
Exercise 15-9 Blue Corporation has 8,200 shares of $100 par value, 7%, preferred stock and 46,200 shares of $10 par value common stock outstanding at December 31, 2017. Answer the questions in each of the following independent situations. (a) If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2014, what are the dividends in arrears at December 31, 2017? Amount of dividends in arrears $ How should these dividends be reported? The cumulative dividend is as a liability. (b) If the preferred stock is convertible into 7 shares of $10 par value common stock and 3,300 shares are converted, what entry is required for the conversion assuming the preferred stock was issued at par value? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (c) If the preferred stock was issued at $105 per share, how should the preferred stock be reported in the stockholders' equity section? (Enter account name only and do not provide descriptive information.)
Transcribed Image Text:Exercise 15-9 Blue Corporation has 8,200 shares of $100 par value, 7%, preferred stock and 46,200 shares of $10 par value common stock outstanding at December 31, 2017. Answer the questions in each of the following independent situations. (a) If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2014, what are the dividends in arrears at December 31, 2017? Amount of dividends in arrears $ How should these dividends be reported? The cumulative dividend is as a liability. (b) If the preferred stock is convertible into 7 shares of $10 par value common stock and 3,300 shares are converted, what entry is required for the conversion assuming the preferred stock was issued at par value? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (c) If the preferred stock was issued at $105 per share, how should the preferred stock be reported in the stockholders' equity section? (Enter account name only and do not provide descriptive information.)
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