Walking Bear Resources Inc.

Equity Section of the Balance Sheet

March 31, 2023

Contributed capital:

Preferred shares, $17 cumulative, 1,900 shares

authorized, issued, and outstanding $ 342,000

Common shares, unlimited shares authorized,

34,000 shares issued and outstanding 816,000

Total contributed capital $ 1,158,000

Retained earnings 456,000

Total equity $ 1,614,000

Required:

a. Refer to the equity section above. Assume that the preferred are convertible into common at a rate of eight common shares for each share of preferred. If 1,000 shares of the preferred are converted into common on April 1, 2023, prepare the journal entry.