Assume that John Deere Co. issues 2,000 shares of $100 par, 6% convertible preferred stock for $105 per share. Shareholders have the right to exchange each share of convertible preferred stock for five shares of $10 par common stock. Use the template below to show the financial statement effects of the following events.
a. Issuance of the preferred stock
b. Declaration and payment of the cash dividend on the preferred stock
c. Conversion of the preferred stock to common stock when the market value of the common stock is $29 per share