1) Ayayai Services Inc. issued 1,300 $1 convertible preferred shares at $75 and 4,400 common shares at $25 each in 2019. Each preferred share is convertible into three common shares. On March 15, 2020, preferred shareholders converted 180 preferred shares into common shares. Record the conversion.

Account Titles and Explanation	Debit	Credit

2) Swifty Inc. has the following selected financial data:

		2020		2019
Net income		$715,000		$681,000
Total assets		5,143,000		4,544,000
Preferred shares, 4%, cumulative		603,000		603,000
Common shares		365,000		365,000
Retained earnings		2,793,000		2,207,000
Accumulated other comprehensive income		159,000		144,300
Total shareholders equity		3,920,000		3,319,300
Cash dividends paid in the year		129,000		171,400
Market price of common shares		$98.54		$62.21
Weighted average number of common shares		79,000		79,000

There were no preferred dividends in arrears.

a) Calculate the following ratios for 2020. (Round your answers to 2 decimal places, e.g. 52.75 or 52.75%.)

Rate of return on common shareholders equity			%
Payout ratio			%
Price earnings ratio			times
Book value		$
Rate of return on total assets			%