Progressive Parts Corporation issued 25,000 preferred shares on May 10 for $35 each. Each share is convertible into two common shares. On November 21, the preferred shares had a fair value of $37 each, and the common shares $19 each. On this day, 5,000 of the preferred shares are converted into common shares.
(a) Journalize the issue of the preferred shares on May 10.
(b) Journalize the conversion of the preferred shares on November 21.