Omega Company Has Issued Both Common and Preferred Stock What Is the Necessary Journal Entry If 5,000 Shares of Preferred

question 67

Essay

Omega Company has issued both common and preferred stock. The preferred stock is convertible into common stock. The following information is provided for Omega Company's Stockholders' equity:
$$\begin{array} { | l | r | } \hline \begin{array} { l } \text { Convertible Preferred Stock, } \$ 30 \text { par, } 25,000 \text { shares issued } \\\text { and outstanding }\end{array} & \$ 750,000 \\\hline \text { Additional Paid-in Capital in Excess of Par-Preferred } & 150,000 \\\hline \text { Common Stock, } \$ 2 \text { par, } 125,000 \text { shares issued and } & \\\text { putstanding } & 250,000 \\\hline \text { Additional Paid-in Capital in Excess of Par-Common } & 3,125,000 \\\hline \text { Retained Earnings } & 1,600,000 \\\hline\end{array}$$
What is the necessary journal entry if 5,000 shares of preferred are converted under each independent scenario:
a. Each share of convertible stock is convertible into 1.5 shares of common stock.
b. Each share of convertible stock is convertible into 4 shares of common stock.

Recognize commonly accepted morally justifiable behaviors.

Learn about the elements of moral conation and their relevance to leadership.

Understand how a leader's power orientation influences their ethical behavior.

Distinguish between ethical dilemmas and their exceptions in leadership contexts.

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Definitions:

Slopes

The measure of the steepness or incline of a surface, typically defined as a ratio or a percentage.

Tapered Washers

Specialized washers with a taper used to create a level surface when attaching fasteners to surfaces that are not perpendicular to the fastener axis.

Alternate Position

A hypothetical condition of a part used in design to represent different stages of its movement or assembly for analysis.

Thin Lines

Thin lines in technical drawings represent features that are not visible in the current view, boundaries of adjacent or hidden surfaces, or paths of motion, providing clarity and detail.