1A. Pechstein Corporation issued 2,780 shares of $8 par value common stock upon conversion of 1,200 shares of $50 par value preferred stock. The preferred stock was originally issued at $58 per share. The common stock is trading at $27 per share at the time of conversion. Record the conversion of the preferred stock.
1B. On January 1, 2014 (the date of grant), Pechstein Coprporation issues 2,070 shares of restricted stock to its executives. The fair value of these shares is $111,600, and their par value is $11,200. The stock is forfeited if the executives do not complete 3 years of employment with the company.
Prepare journal entries for January 1, 2014, and on December 31, 2014, assuming the service period is 3 years.
1C. On January 1, 2014, Pechstein Corporation granted 2,310 shares of restricted $5 par value common stock to executives. The market price (fair value) of the stock is $70 per share on the date of grant. The period of benefit is 2 years.
Prepare Barwood’s journal entries for January 1, 2014, and December 31, 2014 and 2015.
1D. Pechstein Company has bonds payable outstanding in the amount of $504,500, and the Premium on Bonds Payable account has a balance of $7,600. Each $1,000 bond is convertible into 20 shares of preferred stock of par value of $50 per share. All bonds are converted into preferred stock.Assuming that the book value method was used, what entry would be made?