When Recording the Conversion of Preferred Stock into Common Stock

question 143

Multiple Choice

When recording the conversion of preferred stock into common stock, if the total contributed capital eliminated in regard to the preferred stock is less than the common stock par value, the difference is debited to

• A) Additional Paid-in Capital on Preferred Stock.
• B) Additional Paid-in Capital on Common Stock.
• C) Shareholders' Equity.
• D) Retained Earnings.

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