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    The document describes a journal entry to record the conversion of 300 shares of $50 par convertible preferred stock into common stock. If each preferred share is converted into 6 shares of $8 par common stock, Cole Corporation will make the following journal entry on December 31: Debit Common Stock for $14,400 (300 shares x $50 par x 6 shares per preferred share = 1,800 shares x $8 par) Credit Preferred Stock for $15,000 (300 shares x $50 par) Credit Additional Paid-in Capital on Preferred Stock for $18,000 (300 shares x $110 issue price - $15,000 par value)

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    The document describes a journal entry to record the conversion of 300 shares of $50 par convertible preferred stock into common stock. If each preferred share is converted into 6 shares of $8 par common stock, Cole Corporation will make the following journal entry on December 31: Debit Common Stock for $14,400 (300 shares x $50 par x 6 shares per preferred share = 1,800 shares x $8 par) Credit Preferred Stock for $15,000 (300 shares x $50 par) Credit Additional Paid-in Capital on Preferred Stock for $18,000 (300 shares x $110 issue price - $15,000 par value)

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    The document describes a journal entry to record the conversion of 300 shares of $50 par convertible preferred stock into common stock. If each preferred share is converted into 6 shares of $8 par common stock, Cole Corporation will make the following journal entry on December 31: Debit Common Stock for $14,400 (300 shares x $50 par x 6 shares per preferred share = 1,800 shares x $8 par) Credit Preferred Stock for $15,000 (300 shares x $50 par) Credit Additional Paid-in Capital on Preferred Stock for $18,000 (300 shares x $110 issue price - $15,000 par value)

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    69 views1 page

    12 2 4

    Uploaded by

    Ashley
    The document describes a journal entry to record the conversion of 300 shares of $50 par convertible preferred stock into common stock. If each preferred share is converted into 6 shares of $8 par common stock, Cole Corporation will make the following journal entry on December 31: Debit Common Stock for $14,400 (300 shares x $50 par x 6 shares per preferred share = 1,800 shares x $8 par) Credit Preferred Stock for $15,000 (300 shares x $50 par) Credit Additional Paid-in Capital on Preferred Stock for $18,000 (300 shares x $110 issue price - $15,000 par value)

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    1/2/2020 CengageNOWv2 | Online teaching and learning resource from Cengage Learning

    Convertible Preferred Stock

    Instructions X

    General Journal Shaded cells have feedback. X


    Assume Cole Corporation originally issued 300 shares of $50 par convertible preferred stock at $110 per share on December 31.
    Chart of Accounts X

    Required:
    If each preferred share may be converted into 6 shares of $8 par common stock and all the shares are converted, what journal entry will Cole make to record the
    If eachonpreferred
    conversion Decembershare CHART
    31?may be converted into 6 sharesOF ACCOUNTS
    of $8 par common stock and all the shares are converted, what journal entry will Cole
    make to record the conversion? Cole Corporation
    General Ledger
    How does grading work?

    ASSETS REVENUE PAGE 1

    111 Cash GENERAL JOURNAL 411 Sales Revenue Score: 49/49


    121 Accounts Receivable
    DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT
    141 Inventory
    ✔ ✔ EXPENSES ✔
    1 Dec. 31 Preferred Stock   15,000.00
    152 Prepaid Insurance 500 Cost of Goods Sold
    ✔ ✔
    2 Additional Paid-in Capital on Preferred Stock   18,000.00
    181 Equipment 511 Insurance Expense
    ✔ ✔
    3 Common
    189 Accumulated Stock
    Depreciation 512  Utilities Expense 14,400.00
    521 Salaries Expense

    https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false 1/1

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