Bach Company has issued both common and preferred stock.The preferred stock is convertible into common stock.The following information is provided for Bach Company Stockholders' equity:
What is the necessary journal entry if 5,000 shares of preferred are converted under each independent scenario:
a.Preferred shares are convertible into common stock on a share-for-share basis.
b.Each share of convertible stock is convertible into 1.5 shares of common stock.

Question

Bach Company has issued both common and preferred stock.The preferred stock is convertible into common stock.The following information is provided for Bach Company Stockholders' equity:
  What is the necessary journal entry if 5,000 shares of preferred are converted under each independent scenario:
a.Preferred shares are convertible into common stock on a share-for-share basis.
b.Each share of convertible stock is convertible into 1.5 shares of common stock.

Quizplus · Accepted Answer

The Answer of Bach Company has issued both common and preferred stock.The preferred stock is convertible into common stock.The following information is provided for Bach Company Stockholders' equity:
  What is the necessary journal entry if 5,000 shares of preferred are converted under each independent scenario:
a.Preferred shares are convertible into common stock on a share-for-share basis.
b.Each share of convertible stock is convertible into 1.5 shares of common stock.

Bach Company Has Issued Both Common and Preferred Stock