For each event listed below, identify the accounts that should be used to record the economic event. You should enter the letters that correspond to the accounts that should be used. Your answers will be evaluated based on whether you have included every account that is required for that transaction and have not included any additional accounts that are not needed. You should enter the letters that correspond to the accounts that should be used, with a comma and a space following the comma (e.g., A, B). An account can be used in analyzing more than one event.

A.	additional paid-in capital
B.	bonds payable
C.	cash
D.	common stock
E.	discount on bonds payable
F.	equipment
G.	interest expense
H.	interest payable
I.	preferred stock
J.	premium on bonds payable
K.	treasury stock
L.	land

Example:

Event: The company purchased equipment, paying cash of $15,000 Answer: F, C

1. The company issued 50,000 shares of $20 par-value, convertible preferred stock for $4,000,000.

2. Preferred stockholders (see event 1) elected to convert 5,000 shares of convertible preferred stock into common stock.