Several years ago, Walker, Inc.issued 12, 000 shares of $40 par preferred stock at $60.Each share of preferred was convertible into three shares of $10 par common stock.On January 10, 2010, one-half of the preferred stock was converted.
Required:
Indicate the credits that should be made in the entry to record this conversion.

Par Preferred Stock

Preferred shares of a corporation with a nominal face value, which typically dictates dividends and liquidation claims.

Par Common Stock

Common stock issued with a nominal or face value assigned per share, often used in legal documents.

Convertible

A type of security, such as a bond or preferred stock, that can be converted into a specified number of shares of common stock.