rance Corporation was organized on January 1, 2020. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2 per share, on Mar. 1 Issued 5,000 shares of preferred stock for cash at $105 per share, the journal entry is:

Select one:

a. Debit to cash $525,000, credit to common stock $500,000 and credit to paid in capital in excess of par value $25,000.

b. Debit to cash $525,000 and credit to preferred stock $525,000.

c. Debit to cash $525,000, and credit to common stock $525,000.

d. Debit to cash $525,000, credit to preferred stock $500,000 and credit to paid in capital in excess of par value $25,000.