Convertible Securities Suppose Walla Walla Company had paid $175,000 to Freewater Company for an investment in 10,000 shares of the $5 par value preferred stock of Freewater Company. The preferred stock was later converted into 10,000 shares of Freewater Company common stock ($1 par value). Using the balance sheet equation, prepare an analysis of transactions of Walla Walla Comps and Freewater Company. Prepare the journal entries to accompany your analysis in requirement 1