Exercise 9-9 Sam's Company reported the following stockholders' equity account balances on December 31, 2014 Preferred stock (1290, $100 par value, call price is $105) $100,000 500,000 Common stock, $10 par value tributed capital-premlum on issue of cor Retalned earnings 110,000 Total On December 31, 2014, Peterson, Inc. acquired 60% of Sam Company's common stock for $550,000 and 40% of its preferred stock for $55,000 The difference between the implied value of the common stock (preferred stock) and the book value is allocated entirely to land (other contnbuted capital and noncontrolling interest). Prepare in general journal form the December 31, 2014, workpaper entries to eliminate the investment in common and preferred stock for each of the following independent cases: (Round answers to o decimal places, e.g. 5,125. Tf $370,000 no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Case I: The preferred stack is noncumulative and nonparticipating. Account Titles and Explanation Debit Credit To establish reciprocity/convert to equity) Exercise 9-9 Sam's Company reported the following stockholders' equity account balances on December 31, 2014 Preferred stock (1290, $100 par value, call price is $105) $100,000 500,000 Common stock, $10 par value tributed capital-premlum on issue of cor Retalned earnings 110,000 Total On December 31, 2014, Peterson, Inc. acquired 60% of Sam Company's common stock for $550,000 and 40% of its preferred stock for $55,000 The difference between the implied value of the common stock (preferred stock) and the book value is allocated entirely to land (other contnbuted capital and noncontrolling interest). Prepare in general journal form the December 31, 2014, workpaper entries to eliminate the investment in common and preferred stock for each of the following independent cases: (Round answers to o decimal places, e.g. 5,125. Tf $370,000 no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Case I: The preferred stack is noncumulative and nonparticipating. Account Titles and Explanation Debit Credit To establish reciprocity/convert to equity)