A Company Issues 1 Million Shares of Preferred Shares with a Price

Multiple Choice

A company issues 1 million shares of preferred shares with a price of $26 per share.The issuance should be recorded as:

A) a debit to Cash of $26 million and a credit to Preferred Shares of $26 million.
B) a debit to preferred shares of $26 million and a credit to cash of $26 million.
C) a debit to Cash of $24 million,a debit to Treasury Shares of $2 million,and a credit to Preferred Shares of $26 million.
D) a debit to Cash of $26 million,a credit to Preferred Shares of $2 million,and a credit to Additional Paid-in Capital of $24 million.