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24 August, 03:42

Riverbed 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 $64 per share. The common stock is trading at $26 per share at the time of conversion. Record the conversion of the preferred stock.

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  1. 24 August, 03:54
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    The answer is given below;

    Explanation:

    Preference stocks 950*50 Dr.$47,500

    Paid in capital in excess of par-preference shares Dr.$ 13,300

    (64-50) * 950

    Common Stocks 1,900*10 Cr.$19,000

    Paid in capital in excess of par-common stocks Cr.$41,800

    (64*950) - (1900*10)
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