Chapter 20 – Corporations: Formation and Capital Stock Transactions
60. Santorini Corporation has outstanding 300,000 shares of $70 par-value preferred stock,
issued at an average price of $84 a share. The preferred stock is convertible into common
stock at the rate of four shares of common stock for each share of preferred stock. Maryann
Miller owns 880 shares of the preferred stock. During the current year she decides to convert
220 shares into common stock. How many shares of common stock will she receive?
61. Elsinore Corporation has outstanding 200,000 shares of $100 par-value preferred stock,
issued at an average price of $110 a share. The preferred stock is convertible into common
stock at the rate of five shares of common stock for each share of preferred stock. Louis
Reynault owns 500 shares of the preferred stock. During the current year he decides to
convert 225 shares into common stock. How many shares of common stock will he receive?
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73. The Ventura Corporation, a new corporation, took over the assets and liabilities of the
Jeremy Ruggers Company on January 2, 2013. The assets and liabilities assumed, after
appropriate revaluation by Ruggers Company, are shown below.
The Ventura Corporation is authorized to issue 100,000 shares of $10 par-value common
stock and 50,000 shares of 12 percent, $50 par-value preferred stock. Record the following
transactions on page 1 of a general journal. Omit descriptions. Prepare the opening balance
sheet for the corporation on January 2, 2013.
Chapter 20 – Corporations: Formation and Capital Stock Transactions
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