CPA Question 10 500 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?

Cr. common stock $51,500.

Cr. paid in capital in excess of par, common $1,500.

Dr. preferred stock $51,500.

Dr. retained earnings $1,500.