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Exercise 2. Conversion of Preference Shares into Ordinary Shares The Exodus Company has 40,000 shares convertible preference share capital, par value P50 and 100,000 shares of P10 par ordinary share capital. The preference shares were originally issued at P75. On September 6, 2018, 2,000 preference shares were converted into ordinary shares. Required: 1. Record the conversion of preference shares into ordinary shares assuming: a. Each preference share is converted into 4 ordinary shares b. Each preference share is converted into 10 ordinary shares 2. State the number of issued and outstanding preference shares and ordinary shares for each of the assumptions