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  3. on 12/31/2020, the balance sheet of union company

On 12/31/2020, the balance sheet of Union Company reports Liabilities as follows: Current liabilities $15,000,000...

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Accounting

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On 12/31/2020, the balance sheet of Union Company reports Liabilities as follows: Current liabilities $15,000,000 Long Term Notes Payable 8,000,000 Mandatory Redeemable Preferred Stock (Par Value) $10,000,000 (10% dividends) Issued 1/1/2018. Plus: Additional Paid in Cap MRPS 2.000.000 12,000,000 Total liabilities $ 35,000,000 Assume that the redemption schedule states that: Date Redemption value (% of par value) 1/1/2019 80%; 1/1/2020 90%; 1/1/2021 95%; and 1/1/2022 100% Assume on July 1, 2020, holders of 50% of the MRPS redeemed their shares. Required: Make the journal entries for the issuance of the Preferred Stock (1/1/2018) and the rederhption of 50% of the stocks on 7/1/2020

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