Current Attempt in Progress

Nash Corporation has $9,100$ shares of $$100$ par value, $8\%,$ preferred stock and $53,200$ shares of $$10$ par value common stock

outstanding at December $31,2025.$

Answer the questions in each of the following independent situations.

$($a$)$ If the preferred stock is cumulative and dividends were last paid on the preferred stock on December $31,2022,$ what are the

dividends in arrears on December $31,2025?$

The amount of dividends in arrears on the December $31,2025,$$

How should these dividends be reported?

The cumulative dividend is

as a liability.

$($b$)$ If the preferred stock is convertible into $7$ shares of $$10$ par value common stock and $3,300$ shares are converted, what entry is

required for the conversion assuming the preferred stock was issued at par value? $($List all debit entries before credit entries. Credit

account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the

account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

$($c$)$ If the preferred stock was issued at $$108$ per share, how should the preferred stock be reported in the stockholders' equity section?

$($Enter account name only and do not provide descriptive information.$)$

Nash Corporation

Balance Sheet $($Partial$)$