Question: 3. Which is the correct journal entry to convert 5,000 convertible preferred shares to 10,000 common shares when preferred shares were originally purchased for $10.00

3. Which is the correct journal entry to convert 5,000 convertible preferred shares to 10,000 common shares when preferred shares were originally purchased for $10.00 and common shares for $4.00? a. Preferred shares 40,000 Common shares 40,000 b. Preferred shares 50,000 Common shares 50,000 c. Preferred shares 50,000 Retained earnings 10,000 Common shares 40,000 d. Preferred shares 100,000

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