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  3. 4.throughout 2020 and 2021, listco, inc. has 112,0

4.Throughout 2020 and 2021, Listco, Inc. has 112,000 outstanding shares of $2 par value common...

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Accounting

4.Throughout 2020 and 2021, Listco, Inc. has 112,000 outstanding shares of $2 par value common stock and 5,000 outstanding shares of $100 par 10% cumulative participating preferred stock. On December 31, 2021, Listco declares $700,000 in cash dividends to be paid on January 5, 2022. No dividends were declared in 2020.

a.(8%) How much of the dividend will the common and preferred shareholders receive?

5.In 2015, The Platinum Company issued $700,000 8% bonds with 700 nondetachable warrants for$765,000 cash. Each warrant entitled the holder to buy 100 shares of The Platinum Companys $2 par common stock at $20 per share and required surrender of the attached $1,000 bond. On March 2, 2021, all The Platinum Company bondholders exercised their warrants for new shares and forfeited the bonds when shares were trading at $40 per share. On March 2, 2021, the unamortized premium on the bonds was $25,000.

a.(8%) Prepare the necessary journal entry for the bond conversion on March 2, 2021 (Assume that The Platinum Company uses the market method to record the stock issuances.)

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