On January $1,2020,$ Wilson Corp. issued $5,000$ shares of preferred stock $($ $$15$ par value$)$ at $$45$ per share. Each share of preferred stock is convertible into $2$ shares of common

stock $($ $$1$ par value$)$ at the option of the holder. On September $1,2020,$ preferred shareholders holding $2,000$ shares of preferred stock converted the stock to common shares

when the common stock was trading at $$25$ per share.

The entry recorded by Wilson Corp. on September $1,2020,$ would include the following

a debit to Retained Earnings for $$10,000$

a credit to Paid$-$in Capital in Excess of Par$-$Common Stock for $$60,000$

a debit to Loss on Conversion for $$10,000$

a credit to Paid$-$in Capital in Excess of Par$-$Common Stock for $$86,000$