In 2019, Elkland, Inc., issued for $103 per share, 90,000 shares of $100 par value convertible, noncumulative preferred stock. One share of preferred stock can be converted into two shares of Elkland's $25 par value common stock at the option of the preferred stockholder. On August 1, 2020, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $35 per share. Prepare the journal entry to record the conversion. (1 point)