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On Jatwary 2, 2016, Bray Corporason asues 900 shares of $100 par coovertete pieterred stock for 5117 per ahare On daruary 7, 2017, al the

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On Jatwary 2, 2016, Bray Corporason asues 900 shares of $100 par coovertete pieterred stock for 5117 per ahare On daruary 7, 2017, al the preferred shaceholdert erevert ther whares so otimhon stek Required: Prpare the January 2, 2015, joumal ectry to mecond the istuance of the prelered stock. 2. Frepare the dowuary 7,2017 , journal entry fo record the comersion asnuming the prelerred atock contract athides that a. each shave of prefered atock is comvertible inho 7 shares of 310 par conven afock ewch share of prelerred stock is comtrbie into 12 shares of 510 psr common stock Chart of Accounts Or CHART OF ACCOUNTS co Bray Corporation General Ledger ASSETS REVENUE 111. Cash 411 Ssles Revenue 121 Acoounts Receivable 141. hventory EXPENSES 152. Prepaid Insurance 500 Cost of Goods Sold 181 Equpment 511 Insurance Expense 198 Accumulsted Deprecation 512 ueties Expense Chart of Aocounts 181 Equipment 511 Insurance Expense 198 Accumulated Depreciation 512 Utaties Expense 521 Salaries Expense LIABILITIES 532 Bad Debt Expense 211 Accounts Payable 540 interest Expense 231 Salaries Payable 541 Depreciation Expense 250 Unearned Revenue 559 Miscelaneous Expenses 261 heome Taxes Payable 910. Income Tax Expense EQUITY 305. Preferred Stock 311 Common Stock Prepare the january 2.2016 , journal entry to record the issuance of the preferred stock. Prepure the January 7,2017 , journal entry to record the conversion, assuming the preferred stock cootract states that Adsitionein instriction a. esch share of preferred slock is convertible into 7 shares of $10 par common stock b. esch share of preferred stock is convertible irto 12 shares or sto par common stock noe 1 t fiok GENERN. JOUPELL. oute Lccouer minLe por RCT DeBr CACoT 1

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