XYZ Corporation issued 1,000 shares of $100 convertible preferred stock at a $30,000 premium. Each share of preferred stock could be converted to 100 shares of $1 par common stock. Prepare the follow journal entries:

a) Sales of the convertible preferred stock

b) Conversion of all the preferred stock to common stock.

c) In general terms, how would the journal entry in b) change if the par value of the preferred stock plus the premium in the additional paid in capital associated with the preferred stock had been less than the par value of the common stock (which is unusual)?