Purchase Solution

Convertible Preferred Stock - Pechstein Corporation

Not what you're looking for?

Ask Custom Question

Pechstein Corporation issued 2,000 shares of $10 par value common stock upon conversion of 1,000 shares of $50 par value preferred stock. The preferred stock was originally issued at $60 per share. The common stock is trading at $25 per share at the time of the conversion. Record the conversion of the preferred stock.

See the attached file.

Attachments
Purchase this Solution
Solution Summary

Attached is a formatted MS Excel spreadsheet containing instructions for the completion of journal entries for a preferred stock conversion.

Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

View More Free Quizzes
Related BrainMass Solutions

  • Preferred Stock: Pechstein Corporation

    511122 Preferred Stock: Pechstein Corporation Pechstein Corporation issued 2000 shares of $10 par value common stock upon conversion of 1000 shares of $50 par value preferred stock.

  • Diluted EPS for 2005

    Information concerning the capital structure of the Petrock Corporation is as follows: December 31, 2004 2005 Common stock 90,000 shares 90,000 shares Convertible preferred stock 10,000 shares 10,000 shares 8% convertible bonds

  • Calculating buyout prices

    Each share of the convertible preferred stock would be valued at a premium of 45% above the current value of Delta Corporation's common stock.

  • Tax & Earnings per Share for Northern and Poland Corporation

    Poland also had 10,000 shares of 2%, $100 par value convertible prefered stock outstanding throughout 2009. Each share of preferred stock is convertible into three shares of common.

  • Management Costs of Two Alternatives

    Each share of the convertible preferred stock would be valued at 45% of the current value of Delta Corporation's common stock.

  • Mergers, Acquisitions and International Financial Managemen

    Each share of the convertible preferred stock would be valued at 45% of the current value of Delta Corporation's common stock.

  • Stock dividend distinguished from a stock split

    Explain how convertible debentures are handled for purposes of EPS computations. A complication in the calculation of EPS arises when stock options or convertible securities (bonds or preferred stock) are outstanding.

  • Vogal Corp.

    $1.61 per share Answer: B Preferred stock can be convertible into 5,000 shares x 8 = 40,000 shares Adjusted No. of Common Shares = Weighted Average Common Shares + No. of convertible shares from preferred stock = 210,000 + 40,000 = 250,000 shares

  • Stage Corporation: Earnings per share, dilution, debentures

    316281 Stage Corporation: Earnings per Share, Dilution & Debentures Stage Corporation has both convertible preferred stock and convertible debentures outstanding at the end of 20X3.

View More Related Solutions