Colossal Combines has 20,000 shares of convertible preferred stock with a par value of $10. On December 1, the preferred stock was converted into 4,000 shares of common stock with a par value of $20.
A. Show the effect on the balance sheet and income statement using the following template.
B. What is the effect on income from the conversion?

Question

Colossal Combines has 20,000 shares of convertible preferred stock with a par value of $10. On December 1, the preferred stock was converted into 4,000 shares of common stock with a par value of $20.
A. Show the effect on the balance sheet and income statement using the following template.
  B. What is the effect on income from the conversion?

Quizplus · Accepted Answer

The Answer of Colossal Combines has 20,000 shares of convertible preferred stock with a par value of $10. On December 1, the preferred stock was converted into 4,000 shares of common stock with a par value of $20.
A. Show the effect on the balance sheet and income statement using the following template.
  B. What is the effect on income from the conversion?

Colossal Combines Has 20,000 Shares of Convertible Preferred Stock with a Par