Alder Company issues 1,00 shares of $100 par value, convertible preferred stock at par value Each share is convertible into 10 shares of $1 par value common stock Later in the year, 500 shares of the preferred stock are converted into common stock, when the market value of the two classes of stock ...

Particular Dr Cr Issuance bank 10000 Preferred stock ...

Alder Company issues 1,00 shares of $100 par value, convertible preferred stock at par value. Each share

Question:

Alder Company issues 1,00 shares of $100 convertible preferred stock at Each share is convertible into 10 shares of $1 common stock. Later in the year, 500 shares of the preferred stock are converted into common stock, when the market value of the two classes of stock is $101 and $13 respectively.
Journalize the entry for the issuance of the preferred stock.
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...