Enterprise Leasing Issued 500 Shares of $20 Par Value Convertible

Enterprise Leasing issued 500 shares of $20 par value convertible preferred stock at $22 per share.Each preferred share is converted to 7 shares of $4 par value common stock.The entry to record this conversion would include a

A) debit to Additional Paid-in Capital on Preferred Stock for $11, 000
B) credit to Common Stock for $11, 000
C) debit to Retained Earnings for $3, 000
D) credit to Additional Paid-in Capital from Preferred Stock Conversion for $3, 000