Columbia Clay, Inc. issues 1.14 million shares of preferred stock with a par value of $9.00 at its market price of $33.00 per share. The issuance should be recorded with a debit to Cash for:. a. $10.26 million and a credit to Preferred Stock for $10.26 million.
b. $27.36 million, a credit to Additional Paid-in Capital for $10.26 million, and a credit to Preferred Stock for $37.62 million.
c. $37.62 million and a credit to Preferred Stock for $37.62 million.
d. $37.62 million, a credit to Preferred Stock for $10.26 million, and a credit to Additional Paid-in Capital for $27.36 million.