Toronto Corporation Has 5,000 Preferred Shares That Have Been Issued

Short Answer

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