Prepare adjusting entry
stockholder equity
peyton approved prides itself on transparency with shareholders and investors. the company has added two storefront locations and launched a new marketing campaign, which is estimated to bring in 20,000 new customers over the next 6 months.
the company expects this expansion will require an additional $1,000,000 of capital and generate an additional $600,000 of after-tax profit. the options are:
1) issuing an additional $1,000,000 of 10%, 100-par convertible preferred stock (same class as is currently outstanding)
2) issue an additional $1,000,000 of 8% convertible bonds (same terms as the existing issue)
3) $500,000 each of preferred stock and bonds