1. How would Crocs recognize the preferred stock issued to Blackstone Group?
Original blog posting (March 3, 2014)

2. Crocs will be issuing $200 million of preferred stock
Blackstone Group investing $200 million
Par value of preferred stock is $0.001 per share

3. Question 1
What price per share would Blackstone Group be paying per share of Crocs’ preferred stock?

4. Question 2
For the sake of this exercise, assume that all of the preferred shares are purchased by Blackstone Group on January 15, What journal entry would Crocs prepare to recognize this issuance of preferred stock?

5. Question 3
What is the impact of this preferred stock issuance on Crocs’ assets, liabilities, and stockholders’ equity?

6. Question Recap
What price per share would Blackstone Group be paying per share of Crocs’ preferred stock?
For the sake of this exercise, assume that all of the preferred shares are purchased by Blackstone Group on January 15, What journal entry would Crocs prepare to recognize this issuance of preferred stock?
What is the impact of this preferred stock issuance on Crocs’ assets, liabilities, and stockholders’ equity?

7. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at Related video resources can be found at Questions or comments? Contact Dr. Wendy Tietz at