Pechstein Corporation issued 2,000 shares of $10 par value ordinary shares upon conversion of 1,000 shares of

Question:

Pechstein issued 2,000 shares of $10 ordinary shares upon conversion of 1,000 shares of $50 preference shares. The preference shares were originally issued at $60 per share. The ordinary shares are trading at $26 per share at the time of conversion. Record the conversion of the convertible preference shares.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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,...