WileyPlus: Bonita Corporation has 8,200 shares of $100 par value, 7%, preferred stock and 46,200 shares of $10 par value common stock outstanding at December 31, 2025.

Answer the questions in each of the following independent situations.

(a) If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2022, what are the dividends in arrears on December 31, 2025?

The amount of dividends in arrears on the December 31, 2025

How should these dividends be reported?

The cumulative dividend is

~ as a liability.

(b) If the preferred stock is convertible into 7 shares of $10 par value common stock and 3,300 shares are converted, what entry is required for the conversion assuming the preferred stock was issued at par value?