Toronto Corporation has 5,000 preferred shares that have been issued at $50 per share. Each share is convertible into one common share. When the market values of preferred shares are $55 and common shares are $75, respectively, the 5,000 shares are converted into common shares. The journal entry to record the conversion of the shares is

Preferred Shares75,000Common Shares75,000Preferred Shares375,000Common Shares375,000Preferred Shares500,000Common Shares500,000Preferred Shares250,000Common Shares250,000