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September 20, 2018, the company Tanta issued 100,000 shares of $50 par value 10% cumulative...

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Accounting

September 20, 2018, the company Tanta issued 100,000 shares of $50 par value 10% cumulative dividends convertable preferred stocks for $60 per share. Dividends for 2019 and 202 are in arears.

Each preferred share is convertable into 10 common shares that have a $2 par value

On 7/1/2021, holders of 50% of the preferred stock converted their shares to common stock. On that date the market value of the common stock was $90 per share.

A. Prepare the journal entry on date of issuance

B. Prepare the journal entry on date of conversion

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