1.Three years ago, Growth Corporation issued 6,000 shares of $100 par, convertible, preferred stock for $105 per share. Each share of preferred can be converted into 4 shares of $1 par common stock. Half of the preferred shares were converted in the current year when the common stock was trading for $40 per share. The journal entry to record the conversion will include:

Select one:

a.credit additional paid in capital on common stock $0.

b.credit additional paid in capital on preferred stock $15,000.

c.credit additional paid in capital on common stock $303,000.

d.credit additional paid in capital on common stock $468,000.

2.Crystal Company has $1 par, 50,000,000 shares of common stock and 6%, $100 par, 1,000,000 shares of preferred stock outstanding. The board of directors of Crystal declared cash dividends of $3 million, $5 million, and $50 million in each of its first 3 years of operation: 2015, 2016, 2017, respectively. The preferred stock is cumulative and nonparticipating. Determine the amount of dividends on preferred and common stock for 2017.

Select one:

a.$6 million and $44 million for preferred and common stock, respectively.

b.$7 million and $43 million for preferred and common stock, respectively.

c.$10 million and $40 million for preferred and common stock, respectively.

d.$8 million and $42 million for preferred and common stock, respectively.