Weisberg Corporation has 11,340 shares of $100 par value, 6% preferred stock Weisberg Corporation has 11,340 shares of $100 par value, 6% preferred stock and 54,500 shares of $9 par value common stock outstanding at December 31, 2012. Answer the questions in each of the following independent situations. (a) If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2009, what are the dividends in arrears that should be reported on the December 31, 2012, balance sheet? The dividends in arrears to be reported on the December 31, 2012 $ How should these dividends be reported? The cumulative dividend is reported not reported as a liability.(b) If the preferred stock is convertible into 7 shares of $9 par value common stock and 3,800 shares are converted, what entry is required for the conversion assuming the preferred stock was issued at par value? (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (c) If the preferred stock was issued at $108 per share, how should the preferred stock be reported in the stockholders’ equity section? View Solution:
Weisberg Corporation has 11 340 shares of 100 par value 6



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