Current Attempt in Progress
Crane Corporation has shares of $ par value, preferred stock and shares of $ par value common stock
outstanding at December
Answer the questions in each of the following independent situations.
a If the preferred stock is cumulative and dividends were last paid on the preferred stock on December what are the
dividends in arrears on December
The amount of dividends in arrears on the December $
How should these dividends be reported?
The cumulative dividend is
as a liability.
b If the preferred stock is convertible into shares of $ par value common stock and shares are converted, what entry is
