On January 1, 2015, Kelsey issued 1,000 of its $1 par value, 6% preferred stock for...

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On January 1, 2015, Kelsey issued 1,000 of its $1 par value, 6% preferred stock for...

On January 1, 2015, Kelsey issued 1,000 of its $1 par value, 6% preferred stock for $3 per share. Kelsey incurred no stock

issuance costs. Each share of Kelsey’s preferred stock can be converted into 1 share of Kelsey’s $2 par value common stock. On

August 15, 2015, when 1 share of Kelsey’s common stock was trading for $5 per share, 500 shares of the preferred stock were

converted into common stock. On December 31, 2015, when 1 share of Kelsey’s preferred stock was trading for $3.50 per share,

Kelsey declared the annual cash dividend on her preferred stock. Prepare the entries Kelsey should make on:

January 1, 2015.

August 15, 2015.

December 31, 2015.

business accounting

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Answer 1

Answer #1

Credit($) Debit($) $3,000 А 1 Date Particulars 1/1/2015 Cash Preferred Stock Paid-in Capital in Excess of Par Value - Preferr

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On January 1, 2015, Kelsey issued 1,000 of its $1 par value, 6% preferred stock for...

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