Lopez, Inc.issued 500 shares of $50 par value convertible preferred stock at $80 a share.Each preferred share may be converted to 6 shares of $10 par common stock.The entry to record the conversion of all shares would include a

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The conversion of preferred stock to common stock results in a decrease in preferred stock and an increase in common stock. The difference between the par value of the preferred stock and the par value of the common stock is credited to additional paid-in capital from preferred stock conversion.