In 2015, Eklund, Inc., issued for $103 per share, 80,000 shares of $100 par value convertible preferred stock. One share of preferred stock can be converted into three (3) shares of Eklund's $10 par value common stock at the option of the preferred stockholder. In August 2017, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $30 per share. What total amount should be credited to common stock and additional paid-in capital from common stock issued as a result of the conversion of the preferred stock into common stock?
In 2015, Eklund, Inc., issued for $103 per share, 80,000 shares of $100 par value convertible preferred stock. One share of preferred stock can be converted into three (3) shares of Eklund's $10 par value common stock at the option of the preferred stockholder. In August 2017, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $30 per share. What total amount should be credited to common stock and additional paid-in capital from common stock issued as a result of the conversion of the preferred stock into common stock?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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In 2015, Eklund, Inc., issued for $103 per share, 80,000 shares of $100 par value convertible
What total amount should be credited to common stock and additional paid-in capital from common stock issued as a result of the conversion of the preferred stock into common stock?
[answer both values and label them]
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