Question
In 2017, Bandera Corporation issued for $104 per share, 7,000 shares of $100 par value convertible preferred stock. One share of preferred stock can be
In 2017, Bandera Corporation issued for $104 per share, 7,000 shares of $100 par value convertible preferred stock. One share of preferred stock can be converted into three shares of the companys $25 par value common stock at the option of the preferred stockholder. In August 2017, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $30 per share.
Required: 1. Prepare the journal entry to record the issuance of the preferred stock.
2. Prepare the journal entry to record the conversion.
Please show all work :)
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