E15-8 (LO1,2 (Coerecting Entries for Equity Transactions) Pistons Inc. recently hired a new accountant with extensive experd ence in accounting for partnenships Because of the peressure of the new job, the accountant was unable to seview what he had learned earier about corporation acouing Daing the fist manth, he made the followin entries for May 2 Cash 192,000 35,200 Capital Stock asaed 12,000as of $5 par value common stock at $16 pe sham C: APT-S (32,000 10 Cash 600,.000 Capital Stock Gasued 10,000 shares of $30 per value peeferred Cash 15,000 (Purchased 1,000shares of common stock for the 31 Cash 8,500 Capital Stock Galn on Sale of Stock 5,000 3,500 (Sold 500 shares of treasuzy stock at $17 per share) 8% nd Dividends) Otis Thorpe Corporation has 10,000 shares of S100 par vale E 15-9 (LO 1,3) a referred Stock Entries preferred stock and S0,000 shares of $10 par valse common s Instructions stock outstanding at December 31, 2017 Answer the questions in each of the followinginderpendent situations s cumulative an dividends were last paid on the preferred stock on December 31,2014, what are in arrears that should be reported on the December 31, 2017, balance sheet? How should these dividends the dividends be reported? 0b) If the preferred stock is convertible into seven shares of $10 par value common stock and 4,000 shazes are converted, (c) If the preferred stock was issued at sia? per shane, how should the peferred stock be reported in the stockholders what entry is required for the conversion isumiog the preferred stock was issued at par value? equity