Reference no: EM132995958

Question - On June 18, 2018, Gail Fisher Ltd. Issued for $102 per share, 30,000 no par value, $4 cumulative, convertible preferred shares. Each preferred share could be converted into five no par value common shares at the option of the preferred shareholder. At the time of the share sale, similar non-convertible preferred shares were selling for $100 each. On August 17, 2021, all of the preferred shares were converted into common shares. The market value of the common shares at the date of the conversion was $30 per share. Prepare the journal entry to record the conversion of the preferred shares on August 17, 2021. And declaration and payment of the annual dividend on June 18, 2019?