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In its first year of operations, Arnold Corporation had the following transactions pertaining to its convertible preferred shares and common shares. The preferred dividend rate

In its first year of operations, Arnold Corporation had the following transactions pertaining to its convertible preferred shares and common shares. The preferred dividend rate is $2 per share. Jan. 1 1 Feb. July 1 Nov. 1 Issued 10,000 common shares, no par value for a building that has a FMV of $100,000 Issued 3,000 preferred shares for cash at $41 per share. Declared annual preferred dividends. Converted 1,000 preferred shares to common shares when the market value of the preferred shares was $42 and the market value of the common shares was $20. One share of preferred is convertible to 10 common shares. (a) sJournalize the transactions. (8 Marks) Date Particulars Jan 1 Feb 1 July 1 Nov 1 Dr Cr

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