Question

Brief Exercise 16-03 Windsor Corporation issued 1,900 shares of $10 par value common stock upon conversion of 950 shares of $50 par value preferred stock. The preferred stock was originally issued at $62 per share. The common stock is trading at $26 per share at the time of conversion. Record the conversion of the preferred stock. (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 o for the amounts.) Account Titles and Explanation Debit Credit

Answer 1

Account Titles and Explanation	Debit	Credit
Preferred Stock (950 shares x $ 50 )	$ 47,500
Paid-in Capital in Excess of Par-Preferred Stock (950 shares x ($ 62 (-) $ 50 )	$ 11,400
Common Stock              ( 1,900 shares x $ 10 )		$ 19,000
Paid-in Capital in Excess of Par - Common Stock                 (Balancing Fig. )		$ 39,900
(To record the conversion of the preferred stock )