1/2/2020 CengageNOWv2 | Online teaching and learning resource from Cengage Learning

Convertible Preferred Stock

Instructions X

General Journal Shaded cells have feedback. X

Assume Cole Corporation originally issued 300 shares of $50 par convertible preferred stock at $110 per share on December 31.
Chart of Accounts X

Required:
If each preferred share may be converted into 6 shares of $8 par common stock and all the shares are converted, what journal entry will Cole make to record the
If eachonpreferred
conversion Decembershare CHART
31?may be converted into 6 sharesOF ACCOUNTS
of $8 par common stock and all the shares are converted, what journal entry will Cole
make to record the conversion? Cole Corporation
General Ledger
How does grading work?

ASSETS REVENUE PAGE 1

111 Cash GENERAL JOURNAL 411 Sales Revenue Score: 49/49

121 Accounts Receivable
DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT
141 Inventory
✔ ✔ EXPENSES ✔
1 Dec. 31 Preferred Stock   15,000.00
152 Prepaid Insurance 500 Cost of Goods Sold
✔ ✔
2 Additional Paid-in Capital on Preferred Stock   18,000.00
181 Equipment 511 Insurance Expense
✔ ✔
3 Common
189 Accumulated Stock
Depreciation 512  Utilities Expense 14,400.00
521 Salaries Expense

https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false 1/1