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Sheridan Ltd. issued 12,000 common shares upon conversion of 8,000 preferred shares. The conversion involved all preferred shares outstanding. The preferred shares were originally issued at $9 per share and the Contributed Surplus-Conversion Rights account for the preferred shares had a balance of $9,000. The common shares were trading at $14 per share at the time of conversion.
Problem 1: Record the conversion of the preferred shares. (Credit account titles are automatically indented when the 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.)
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