Novak Corporation has 3500 preferred shares that have been issued at $51 per share. Each share is convertible into one common share. When the market values of preferred shares are $60 and common shares are $85, respectively, the 3500 shares are converted into common shares. The journal entry to record the conversion of the shares is: Preferred Shares Common Shares 31500 31500 178500 O Preferred Shares Common Shares 178500 297500 O Preferred Shares Common Shares 297500 210000 Preferred Shares Common Shares 210000