Reference no: EM132599681

Novak Corporation has 8,500 shares of $100 par value, 8%, preferred stock and 48,800 shares of $10 par value common stock outstanding at December 31, 2020.

Answer the questions in each of the following independent situations.

Question (a) If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2017, what are the dividends in arrears on December 31, 2020, balance sheet?

Question (b) If the preferred stock is convertible into 7 shares of $10 par value common stock and 3,200 shares are converted, what entry is required for the conversion assuming the preferred stock was issued at par value? (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.)

Question (c) If the preferred stock was issued at $105 per share, how should the preferred stock be reported in the stockholders' equity section? (Enter account name only and do not provide descriptive information.)