Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock, $100 par, and 200,000 shares of $25 par common stock. Indicate the accounts that should be recorded in the Description column of the Journal item (2) as the credit accounts and for what amounts ssuming that Sunshine Corp. received cash for the issuance of 800 shares of preferred stock at par.

A.)

Preferred Stock credited for $80,000 and Paid-In Capital in Excess Par - Preferred Stock credited for $24,000

B.)

Treasury Stock credited for $104,000 and Paid-In Capital from Sale of Treasury Stock credited for $104,000

JOURNAL DATE DESCRIPTION PREF DEBIT CREDIT Mar. (1) $104,000