In Its First Year of Operations, Snake Corporation Had the Following

Essay

In its first year of operations, Snake Corporation had the following transactions relating to its convertible preferred shares and common shares. The preferred dividend rate is $ 2 per share.
Jan 1 Issued 10,000 common shares at $ 10 per share.
Feb 1 Issued 3,000 preferred shares for $ 41 per share.
Jul 1 Declared and paid annual preferred dividends.
Nov 1 Converted 1,000 preferred shares to common shares when the market value of the preferred shares was $ 42 and the market value of the common shares was $ 20. One share of preferred is convertible to 10 common shares.
Instructions
a) Journalize the transactions.
b) Indicate the amount to be reported for (1) preferred shares and (2) common shares at the end of the year.