Prepare the journal entry to record this conversion

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Question - On January 3, 2010, Martin Corporation issued 4,000 shares of $50 par convertible preferred stock at $90 per share. Each share is convertible into four shares of $10 par common stock.

REQUIRED QUESTIONS:

a. Prepare the journal entry to record the issuance of the stock on January 3, 2010.

b. On March 5, 2012, each share of preferred was converted. Prepare the journal entry to record this conversion.

c. Assume that instead of the above circumstances regarding conversion, the company agrees to convert each share of preferred into 10 shares of $10 par common stock on March 5, 2012. Prepare the journal entry to record this conversion. Asking to show all work out.

Reference no: EM131933207

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