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1,000 shares of 6%, $100 par convertible preferred stock were issued at $105 per share. Each share is convertible into 20 shares of $5 par common stock. The journal entry to record conversion includes which of the following?

A. Dr. preferred stock $105,000

B. Dr. retained earnings $1,500

C. Cr. paid-in capital in excess of par, common $100,000

D. Cr. common stock $100,000

At December 31, 20X4 and 20X5, Apex Co. had 5,000 shares of $100 par, 7% cumulative preferred stock outstanding. No dividends were in arrears as of December 31, 20X3. Apex did not declare a dividend during 20X4. During 20X5, Apex paid a cash dividend of $56,000 on its preferred stock.

Apex should report dividends in arrears in its 20X5 financial statements as a(an)

A. Accrued liability of $70,000

B. Disclosure of $14,000

C. Accrued liability of $14,000

D. Disclosure of $56,000

A company whose stock is trading at $12 per share has 4,000 shares of $2 par common stock outstanding when the board of directors declares a 35% common stock dividend. Which of the following adjustments should be made when recording the stock dividend? A. Treasury stock is debited for $2,800 B. Additional paid-in capital is credited for $2,800 C. Retained earnings is credited for $2,800 D. Common stock is credited for $2,800