Swift Current Company Equity Section of the Balance Sheet October 31, 2023

RequiredAssume that the preferred are convertible into common at a rate of eight common shares for each share of preferred. If 1,000 shares of the preferred are converted into common on November 1, 2023, prepare the entry and describe how this affects the equity section of the balance sheet (immediately after the conversion).

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Contributed capital: Preferred shares, $17 cumulative, 3,500 shares authorized, issued, and outstanding $1,190,000 Common shares, unlimited shares authorized, 50,000 shares issued and outstanding Total contributed capital Retained earnings Total equity 1,200,000 $2,390,000 472,000 $2,862,000