Sylvan Heights Company issues 106,000 shares of preferred stock for $46 per share. The stock has a fixed dividend rate of 6% and a par value of $9 per share. The company records the issuance with a debit to Cash for: _______Explain.

A) $4.88 million, a credit to Preferred Stock for $954,000, and a credit to Additional Paid-in Capital for 3.92 million.

B) $4.88 million and a credit to Preferred Stock for $4.88 million