Walking Bear Resources Inc.

Equity Section of the Balance Sheet

March 31, 2017

Contributed capital:

Preferred shares, $17 cumulative, 1,700 shares

authorized, issued, and outstanding $ 272,000

Common shares, unlimited shares authorized,

32,000 shares issued and outstanding 768,000

Total contributed capital $ 1,040,000

Retained earnings 454,000

Total equity $ 1,494,000

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, 2017, prepare the entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)