The Following Is an Excerpt from the 2017 Statement of Cash

Short Answer

The following is an excerpt from the 2017 statement of cash flows of Fey Company.
A footnote to the Fey Company financial statements included the following:
(a) Mandatory Convertible Preferred Stock
On March 13, 2017, Fey Company completed an offering of 1,245,000 shares of its 5.75% mandatory convertible preferred stock (the "Preferred Stock") at a public offering price of $582.40 per share, resulting in net proceeds of $714,212 million. At any time prior to March 14, 2020, holders of the Preferred Stock may elect to convert each share of Preferred Stock into 0.8680 shares of Common Stock, subject to anti-dilution adjustments.
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Required:
a. Use the financial statements effects template below to record the convertible preferred stock issued during 2017. The company reduced additional paid-in capital for the issuance costs paid to the underwriter.
b. Use the financial statements effects template below to record the treasury stock acquired.
c. Use the financial statements effects template below to record the dividend paid to preferred stockholders.
d. Assume that on January 1, 2018, all preferred shares are converted to $2.00 par common stock. Explain how Fey Company's balance sheet will be affected by this conversion. How would total equity change?