Omega Company has issued both common and preferred stock.The preferred stock is convertible into common stock.The following information is provided for Omega Company Stockholders' equity:
What is the necessary journal entry if 5,000 shares of preferred are converted under each independent scenario:
a.Each share of convertible stock is convertible into 1.5 shares of common stock.
b.Each share of convertible stock is convertible into 4 shares of common stock.

Question

Omega Company has issued both common and preferred stock.The preferred stock is convertible into common stock.The following information is provided for Omega Company Stockholders' equity:
  What is the necessary journal entry if 5,000 shares of preferred are converted under each independent scenario:
a.Each share of convertible stock is convertible into 1.5 shares of common stock.
b.Each share of convertible stock is convertible into 4 shares of common stock.

Quizplus · Accepted Answer

The Answer of Omega Company has issued both common and preferred stock.The preferred stock is convertible into common stock.The following information is provided for Omega Company Stockholders' equity:
  What is the necessary journal entry if 5,000 shares of preferred are converted under each independent scenario:
a.Each share of convertible stock is convertible into 1.5 shares of common stock.
b.Each share of convertible stock is convertible into 4 shares of common stock.

Omega Company Has Issued Both Common and Preferred Stock