A N 0 P R S T U V W 2 3 $ $ 4 Q The following information relates to Beerbo's convertible preferred stock. Par value per preferred share Preferred shares issued Issuance price with conversion feature Fair market value without conversion feature Conversion "sweetener" per preferred share The following information relates to Beerbo's convertible preferred stock. 1,000.00 Par value per preferred share 100.00 Preferred shares issued 150,000.00 Issuance price with conversion feature 99,000.00 Fair market value without conversion feature Conversion "sweetener" per preferred share 5 $ $ 10.00 10,000.00 150,000.00 99,000.00 0.00 6 7 $ 0.00 8 9 10 $ 1.00 $ 100.00 11 Par value per common share Conversion rate: common shares per preferred share Bonds converted Par value per common share 10.00 Conversion rate: common shares per preferred share 100.00 % Bonds converted 0.50 100.00 % 12 13 14 15 16 ACCOUNT (use drop-down menu) DEBIT CREDIT ACCOUNT (use drop-down menu) DEBIT CREDIT --- 17 18 19 20 What journal entry (or entries) must Beerbo record when the securities are issued? Leave 21 22 cells blank if nothing is required. 23 24 25 26 27 28 29 30 What journal entry must Beerbo record when 31 the securities are converted? Leave cells blank if nothing is required. 32 33 1 A N 0 P R S T U V W 2 3 $ $ 4 Q The following information relates to Beerbo's convertible preferred stock. Par value per preferred share Preferred shares issued Issuance price with conversion feature Fair market value without conversion feature Conversion "sweetener" per preferred share The following information relates to Beerbo's convertible preferred stock. 1,000.00 Par value per preferred share 100.00 Preferred shares issued 150,000.00 Issuance price with conversion feature 99,000.00 Fair market value without conversion feature Conversion "sweetener" per preferred share 5 $ $ 10.00 10,000.00 150,000.00 99,000.00 0.00 6 7 $ 0.00 8 9 10 $ 1.00 $ 100.00 11 Par value per common share Conversion rate: common shares per preferred share Bonds converted Par value per common share 10.00 Conversion rate: common shares per preferred share 100.00 % Bonds converted 0.50 100.00 % 12 13 14 15 16 ACCOUNT (use drop-down menu) DEBIT CREDIT ACCOUNT (use drop-down menu) DEBIT CREDIT --- 17 18 19 20 What journal entry (or entries) must Beerbo record when the securities are issued? Leave 21 22 cells blank if nothing is required. 23 24 25 26 27 28 29 30 What journal entry must Beerbo record when 31 the securities are converted? Leave cells blank if nothing is required. 32 33 1
