Thornwood Partners began business on January 1, 2018. The corporate charter authorized issuance of unlimited no par value common shares, and \(8,000 \$ 3\) stated value, \(10 \%\) cumulative preferred shares. On July 1, Thornwood issued 20,000 common shares in exchange for two years' rent on a retail location. The cash rental price is \(\$ 3,000\) per month and the rental period begins on July 1. What is the correct entry to record the July 1 transaction?

a. Debit to Cash, \(\$ 72,000\); Credit to Prepaid Rent, \(\$ 57,600\)

b. Debit to Prepaid Rent, \(\$ 72,000\); Credit to Common Shares, \(\$ 72,000\)

c. Debit to Prepaid Rent, \(\$ 72,000\); Credit to Common Shares, \(\$ 60,000\); Credit to Contributed SurplusCommon Shares, \(\$ 12,000\)

d. Debit to Prepaid Rent, \(\$ 72,000\); Credit to Common Shares, \(\$ 20,000\); Credit to Contributed SurplusCommon Shares, \(\$ 52,000\)