Culver Corporation issued 2,100 shares of $10 par value common stock upon conver

Question

Culver Corporation issued 2,100 shares of $10 par value common stock upon conversion of 1,050 shares of $50 par value preferred stock. The preferred stock was originally issued at $55 per share. The common stock is trading at $24 per share at the time of conversion.

Record the conversion of the preferred stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

Account Titles and Explanation

Debit

Credit

Explanation / Answer

Debit Credit Preferred Stock (1050*$50) 52,500 Paid in capital in excess of par-preferred (1050 * ($55-$50) 5,250 Paid in capital in excess of Par-common stock 36,750 Common stock (2100*$10) 21000

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