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.

Q: Vincent Corporation has 91,000 shares of $105 par common stock outstanding. On June 30, Vincent…

A: Introduction: A journal entry is a record of a business arrangement in the accounting system of a…

Q: Datatec, Inc., had 400,000 shares of P20 par common stock and 40,000 shares of P100 par, 6%…

A: Net income is net profit after tax but before deduction of preference dividend . When preferred…

Q: A company with 88,000 authorized shares of $8 par common stock issued 30,000 shares at $12.…

A: Retained earnings are the earning which is not distributed among shareholders in the form of…

Q: A company sold 10,000 shares of its own $1 par value common stock for $60,000. The entry to record…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Vaughn Corporation issued 1,900 shares of $10 par value common stock upon conversion of 950 shares…

A: There is two types of stock. Preferred stock Common stock

Q: At the beginning of the current year, Hardin Company had 20,000 shares of $10 par common stock…

A: Weighted average shares outstanding is a number of shares of the company after incorporating…

Q: Culver Corporation issued 1,800 shares of $10 par value common stock upon conversion of 900 shares…

A: Date Particulars Debit Credit      - Preferred Stock  (900 X 50) 45,000     Paid - in capital in…

Q: A company issued 18,000 shares of $25 par value common stock upon conversion of 27,000 shares of $35…

A: The organization can raise funds for the operation song integrity by issuing common stock, preferred…

Q: The company had 200,000 shares of common stock outstanding on January 1. In addition, as of January…

A: Basic earnings per share are calculated by dividing the profit available for an ordinary shareholder…

Q: ABC Company issued 50,000 shares for P100 per share. Par value of the shares is P10. During the…

A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…

Q: On September 12, 3,800 shares of Aspen Company are acquired at a price of $60.00 per share plus a…

A: Brokerage commission paid to purchase the shares will be added to the cost of the shares.

Q: Bogscraft Company has outstanding 60,000 shares of $10 par value common stock and 25,000shares of…

A: The dividend must be declared before it gets paid. The board of directors must pass motion for…

Q: A company acquired 97,000 shares of its common stock at a price of $26 per share and accounted for…

A: Treasury stock: It refers to the own stock bought back from the existing stockholders. As a result…

Q: Ayayai Corporation issued 2,000 shares of $10 par value common stock upon conversion of 1,000 shares…

A: Solution:- Preparation of journal entries as follows under:- Introduction:- The convertible shares…

Q: A company with 94,000 authorized shares of $7 par common stock issued 36,000 shares at $16.…

A: Given that: Issued common shares = 36,000 shares Market price per share = $32 per share

Q: Luke Enterprises has 305,000 shares of $18 par common stock outstanding. On January 19, Luke…

A: Stock dividend result in issuance of shares of company to the existing shareholders unlike the cash…

Q: A company had stock outstanding as follows during each of its first three years of operations: 2,000…

A: Solution:   Preferred   Common     Year Dividends Total Per Share Total Per Share 1 $ 15,000…

Q: On January 1, 20X5, Solace Medical Corp. (SMC) has 85,000 common shares outstanding. The following…

A: Weighted average number of shares outstanding is calculated using the time factor and the number of…

Q: A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9.…

A: Stock dividend means issue of shares instead of giving cash dividend. It also called as…

Q: Pechstein Corporation issued 2,000 shares of $10 par value common stock upon conversion of 1,000…

A: Additional paid in capital in excess of par -common stock  = Preferred Stock + Additional paid in…

Q: A company has 10,000 shares of $10 par common stock outstanding. Prepare entries to record the…

A: Treasury stocks are company’s own stock that it repurchases from the market. Treasury stocks are…

Q: Pro-Builders Corporation has 1,500,000 shares of $5 par common stock outstanding. On September 2,…

A: Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in…

Q: Antique Buggy Corporation has 820,000 shares of $35 par common stock outstanding. On June 8, Antique…

A: Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in…

Q: Cullumber Corporation issued 11,500 shares of $2 par value common stock upon conversion of…

A: Adjusting journal entry: At year end when company finalise its accounts then any unrecognized income…

Q: Trans Union Corporation issued 5,000 shares for $50 per share in the current year, and it…

A:

Q: Prepare the journal entries for the original purchase, the dividend, and the sale under the cost…

A:

Q: Novak Corp. began business by issuing 235000 shares of $5 par value common stock for $22 per share.…

A: Shareholders equity balance includes common stock, preferred stock, additional paid-in capital. From…

Q: A Calculator On January 1, Sunshine Corporation had 38,000 shares of $12 par value common stock…

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…

Q: Green Thumb, Inc. had 18,000 shares of common stock outstanding on January 1. An additional 6,000…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

Q: On February 22, Stewart Corporation acquired 3,300 shares of the 115,000 outstanding shares of…

A: Equity share capital refers to the capital raised by a company by offering shares. The investors who…

Q: On January 1, Vermont Corporation had 43,000 shares of $9 par value common stock issued and…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: Gang company issued 1,000,000 shares of common stock. Of these 150,000 shares were held as treasury…

A: No. of shares issued means shares issued by the company including the shares purchased by the…

Q: Pro-Builders corporation has 1,500,000 shares par common stock outstanding. On September 2, pro-…

A: Definition: Stock dividends: Stock dividends are the number of shares issued by a company to the…

Q: INDUSTRY Company had 40,000 shares of ₱10 par value treasury shares. These shares were reacquired at…

A: The amount of net assets that are legally or contractually prohibited from being distributed as…

Q: A company issued 1,000,000 shares of common stock. Of these 150,000 shares were held as treasury…

A: Equity shares are the riskiest investment avenues and do not guarantee any return to the investors.…

Q: Top-Value Corporation has 900,000 shares of $26 par common stock outstanding. On September 2,…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Vienna Corporation has 31,000 shares of $90 par common stock outstanding. On June 8, Vienna…

A: Stock Dividend: 'Stock dividend' is a dividend paid in the form of stocks. The stock dividend does…

Q: A company with 95,000 authorized shares of $7 par common stock issued 42,000 shares at $16.…

A: Dividends are calculated on Issued Shares fully paid up.In the given problem, Issued and fully paid…

Q: Sabie Inc. has 100,000 authorized shares of common stock, 2,000 shares issued and 1,800 outstanding.…

A: Stock split is the division of existing shares. Stock split is not recorded, hence it does not…

Q: A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $8.…

A: A dividend refers to the amount of profit that the shareholders get on each share purchased by them.…

Q: Bramble Corporation issued 2,200 shares of $10 par value common stock upon conversion of 1,100…

A: The conversion ratio is set by the company before the preferred stock is issued. For example, one…

Q: Bogscraft Company has outstanding 65,500 shares of $10 par value common stock and 26,100 shares of…

A: Journal entries are defined as reporting of transaction into the books of accounts and it is…

Q: Junkyard Arts, Inc., had earnings of $174,300 for the year. The company had 24,000 shares of common…

A: Earnings per share refers to the amount earned by each stockholder. This can be identified by…

Q: On September 1, Ziegler Corporation had 56,000 shares of $5 par value common stock, and $168,000 of…

A: The facts mentioned in the question are as follows: Ziegler Corp has 56,000 shares at $5 par value…

Q: INDUSTRY Company had 40,000 shares of ₱10 par value treasury shares. These shares were reacquired at…

A: Solution: Purchase of own stock is shown as reduction from retained earnings  in stockholder's…

Q: Richman Corporation has 100,000 shares of $5 par value common stock outstanding. It declares a 15%…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8.…

A: No. of shares issued under stock dividend = No. of common stock issued x 4% = 40000 shares x 4% =…

Q: On February 13, Solo Inc. reacquires 50,000 shares of its $1 par value common stock at the current…

A: The treasury stock includes the own shares of the company that are repurchased from the…