Accounting for Preferred Stock Two separate scenarios follow for the issuance of preferred stock. a. Bell Inc. issues 1,200 shares of 6% convertible preferred stock ( $10 par value) on December 31 for $120,000. b. Bell Inc. issues 1,200 shares of 6% redeemable preferred stock ( $10 par value) on December 31 for $120,000. 1. For each separate scenario, record the issuance of preferred stock. 2. For each separate scenario, indicate the financial statement presentation of preferred stock at December 31