500 shares of 6%, $100 par convertible preferred stock were issued at $103 per share. each share is convertible into 20 shares of $5 par common stock. the journal entry to record conversion includes which of the following? a) cr. paid in capital in excess of par, common $1,500.b) dr. retained earnings $1,500.c) dr. preferred stock $51,500.d) cr. common stock $51,500

correct option is a.)  Cr. paid in capital in excess of par, common $1,500

Explanation:

given data

share = 500

rate = 6%

preferred stock = $100 par convertible

per share = $103

convertible share = 20 shares

par common stock = $5

solution

we know here equity isue is

equity issue = 500 × 20× 5 = 50000

and

preferred share holder will be

preferred share holder  = 100 × 103 = 51500

so

paid in excess of par is

paid in excess of par = 51500 - 50000

paid in excess of par = 1500

so correct option is here a.) Cr. paid in capital in excess of par common $1,500

sorry idk it

explanation:

i might look it up later.