Convertible Preferred Stock

Love Company issued 1,000 shares of convertible preferred stock, $1,000 par, for 103 (103% of face value) on June 30, 2014. Each preferred share was convertible into 10 shares of common stock (par value of $5). On June 30, 2016, 100 shares of preferred were converted by the investors to 1,000 shares of common stock. The market price of the shares of common at the date of the conversion was $150 per share. Prepare the journal entry to record the conversion of the preferred stock to common stock.