On January 1, 2018, TNT, Inc B) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 200,000 & \\\hline \text { Preferred Stock-Convertible } & & 200,000 \\\hline\end{array}$$

On January 1, 2018, TNT, Inc. issued 1,500 shares of $80 par value, convertible preferred shares for $200,000. Each preferred share is convertible into one share of $10 par common stock. What is the necessary journal entry to record this transaction?

A) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 200,000 & \\\hline \text { Convertible Preferred Stock } - \$ 80 \text { Par } & & 120,000 \\\hline \text { Addl. Paid-in Capital in Excess of Par-Preferred } & & 80,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 200,000 & \\\hline \text { Preferred Stock-Convertible } & & 200,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 200,000 & \\\hline \text { Preferred Stock - } \$ 80 \text { Par } & & 15,000 \\\hline \text { Addl. Paid-in Capital in Excess of Par-Preferred } & & 185,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | l | } \hline \text { Cash } & 120,000 & \\\hline \text { Preferred Stock-Convertible } & & 120,000 \\\hline\end{array}$$