LC USA Conversion of Preferred Stock into Common Stock Evans & Sons, Inc., has 20,000 shares of $100 par value, six percent preferred stock and 100,000 shares of $1.00 par value common stock outstanding. The preferred stock is convertible into the company's common stock at a conversion rate of 1-10-20; that is, each share of preferred stock is convertible into 20 shares of common stock. The preferred stock had been sold for its par value when issued. Prepare the journal entry to record the conversion of all of the company's preferred stock into common stock. E11.9A. Reverse Stock Split Upland Metals Company had 20.000.000 shares of $0.01 par value common stock outstanding which had been sold for an aggregate amount of $300,000,000. The company s shares are traded on the New York Stock Exchange, which has a minimum listing price of $i per share. Recently, the company's common stock has been trading on the exchange below S1 per share, and the exchange has notified the company that its common stock would be delisted in 30 days if the stock price did not rebound above its minimum listing price. In response to this notification, Upland Metals authorized a 1-for-40 reverse stock split. Following the reverse stock split: a. How many common shares will be outstanding? b. What will be the new par value per share? c. How will the reverse stock split be recorded in the company's accounts