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Preferred Stock: Pechstein Corporation

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Pechstein Corporation issued 2000 shares of $10 par value common stock upon conversion of 1000 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 conversion. Record the conversion of the preferred stock.

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Solution Summary

This solution is comprised of four steps to record the conversion of the preferred stock.

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