Use the Information Above to Answer the Following Question

Multiple Choice

Use the information above to answer the following question.The journal entry to record the transaction will consist of a debit to Cash for $600,000 and a credit (or credits) to:

A) Preferred Stock for $600,000.
B) Preferred Stock for $20,000 and Additional Paid-In Capital for $580,000.
C) Preferred Stock for $20,000 and Retained Earnings for $580,000.
D) Retained Earnings for $600,000.