Real estate valuation: Estimate all ____________________ Convert into estimate of __________________

Which of the following parties would be interested in an analysis of the firm's financial statements?

A) Investors B) Creditors C) The firm's managers D) all of the above

Bach Company has issued both common and preferred stock. The preferred stock is convertible into common stock. The following information is provided for Bach Company Stockholders' equity:

Preferred stock, $14 par, 25,000 shares issued and outstanding 350,000 Additional Paid-in-Capital in Excess of Par—Preferred 100,000 Common Stock, $9 par, 125,000 shares issued and outstanding 1,125,000 Additional Paid-in-Capital in Excess of Par—Common 875,000 Retained Earnings 1,600,000 What is the necessary journal entry if 5,000 shares of preferred are converted under each independent scenario: a. Preferred shares are convertible into common stock on a share-for-share basis. b. Each share of convertible stock is convertible into 1.5 shares of common stock. What will be an ideal response?