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.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 5P: Alert Companys shareholders equity prior to any of the following events is as follows: The company...
Related questions
Question
100%
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. |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 1 steps
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning