Fronthouse Corp. issues 10,000 shares of no-par value preferred stock for cash at $60 per share. The journal entry to record the transaction will consist of a debit to Cash for $600,000 and a credit (or credits) to:

Preferred Stock for $20,000 and Retained Earnings for $580,000.

Retained Earnings for $600,000.

Preferred Stock for $20,000 and Additional Paid-in Capital for $580,000.

Preferred Stock for $600,000.