On January 1, 2022, TNT, Inc. issued 1,700 shares of $70 par value, convertible preferred shares for $160,000. Each preferred share is convertible into one share of $20 par common stock. On August 1, 2022, all preferred shareholders converted their shares into common stock. What is the necessary journal entry to record the August 1st transaction?

A.

Preferred Stock	160,000
Common StockPar		160,000

B.

Preferred Stock	126,000
Addl. Paidin Capital in Excess of ParPreferred	1,700
Common Stock		1,700
Add. Paidin Capital in Excess of ParCommon		126,000

C.

Convertible Preferred Stock	119,000
Addl. Paidin Capital in Excess of ParPreferred	41,000
Common Stock		34,000
Add. Paidin Capital in Excess of ParCommon		126,000

D.

Common StockPar	160,000
Preferred Stock		160,000