Prepare the journal entry to record this conversion

Assignment Help Accounting Basics
Reference no: EM131933207

Question - On January 3, 2010, Martin Corporation issued 4,000 shares of $50 par convertible preferred stock at $90 per share. Each share is convertible into four shares of $10 par common stock.

REQUIRED QUESTIONS:

a. Prepare the journal entry to record the issuance of the stock on January 3, 2010.

b. On March 5, 2012, each share of preferred was converted. Prepare the journal entry to record this conversion.

c. Assume that instead of the above circumstances regarding conversion, the company agrees to convert each share of preferred into 10 shares of $10 par common stock on March 5, 2012. Prepare the journal entry to record this conversion. Asking to show all work out.

Reference no: EM131933207

Questions Cloud

What is the optimal order size : Assume that the shipping company charges $900 as fixed cost per shipment
Can the hotel be charged with a crime for allowing suspect : Can you order your front desk staff and security to have all persons suspected of being prostitutes removed from the property?
Transportation problem and unbalanced transportation : What is the difference between solving a balanced transportation problem and an unbalanced transportation problem.
What is the mid spot rate : Andrew Broszio just started as an analyst for Credit Suisse in Zurich, Switzerland. He receives the following quotes for Swiss francs against the dollar.
Prepare the journal entry to record this conversion : On March 5, 2012, each share of preferred was converted. Prepare the journal entry to record this conversion
Profitable and unprofitable online businesses today : What frequently makes the difference between profitable and unprofitable online businesses today?
Compute the ratio of cost of sales to net sales : Compute the ratio of cost of sales to net sales for the two most recent years. Interpret the ratio and discuss the implications of the changes in the ratio.
Commitment to the environment : Most advertising is product focused. However, companies like Exxon-Mobile advertise their commitment to the environment
Calculate the maximum monthly withdrawal : Anita Smith is retiring today with $1,279,450 in her retirement account. She expects to live 30 years in retirement, and plans to leave $1,000,000.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd