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Beach Company issued 5,000 shares of common stock (par value $2) upon conversion of 5,000 shares of preferred stock (par value $1) that was originally issued for a $500 premium. The entry would be: O Debit Convertible Preferred Stock $5,000; Paid-in Capital in excess of par -Preferred $500; Retained Earnings $4,500; and Credit Common Stock $10,000. Debit Convertible Preferred Stock $5,000%; Paid-in Capital in excess of par -Preferred $5,000%3B and Credit Common Stock $10,000. O Debit Convertible Common Stock $5,000; Paid-in Capital in excess of par -Preferred $500%3B Retained Earnings $4,500; and Credit Preferred Stock $10,000. O Debit Common Stock $10,000; Credit Convertible Preferred Stock $5,000; Paid-in Capital in excess of par -Preferred $500; and Retained Earnings $4,500.

Beach Company issued 5,000 shares of common stock (par value $2) upon conversion of 5,000 shares of preferred stock (par value $1) that was originally issued for a $500 premium. The entry would be: O Debit Convertible Preferred Stock $5,000; Paid-in Capital in excess of par -Preferred $500; Retained Earnings $4,500; and Credit Common Stock $10,000. Debit Convertible Preferred Stock $5,000%; Paid-in Capital in excess of par -Preferred $5,000%3B and Credit Common Stock $10,000. O Debit Convertible Common Stock $5,000; Paid-in Capital in excess of par -Preferred $500%3B Retained Earnings $4,500; and Credit Preferred Stock $10,000. O Debit Common Stock $10,000; Credit Convertible Preferred Stock $5,000; Paid-in Capital in excess of par -Preferred $500; and Retained Earnings $4,500.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...
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Beach Company issued 5,000 shares of common stock (par value $2) upon conversion of 5,000 shares of preferred stock (par value $1) that was originally issued for a $500 premium. The entry would be: O Debit Convertible Preferred Stock $5,000; Paid-in Capital in excess of par -Preferred $500; Retained Earnings $4,500; and Credit Common Stock $10,000. Debit Convertible Preferred Stock $5,000; Paid-in Capital in excess of par -Preferred $5,000; and Credit Common Stock $10,000. bit Convertible Common Stock $5,000; Paid-in Capital in excess of par -Preferred $5003; Retained Earnings $4,500; and Credit Preferred Stock $10,000. O Debit Common Stock $10,000; Credit Convertible Preferred Stock $5,000; Paid-in Capital in excess of par -Preferred $500; and Retained Earnings $4.500. ASA
Transcribed Image Text:Beach Company issued 5,000 shares of common stock (par value $2) upon conversion of 5,000 shares of preferred stock (par value $1) that was originally issued for a $500 premium. The entry would be: O Debit Convertible Preferred Stock $5,000; Paid-in Capital in excess of par -Preferred $500; Retained Earnings $4,500; and Credit Common Stock $10,000. Debit Convertible Preferred Stock $5,000; Paid-in Capital in excess of par -Preferred $5,000; and Credit Common Stock $10,000. bit Convertible Common Stock $5,000; Paid-in Capital in excess of par -Preferred $5003; Retained Earnings $4,500; and Credit Preferred Stock $10,000. O Debit Common Stock $10,000; Credit Convertible Preferred Stock $5,000; Paid-in Capital in excess of par -Preferred $500; and Retained Earnings $4.500. ASA
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