On January 1, 2018, Illusions, Inc B) C) D)

On January 1, 2018, Illusions, Inc. issued 900 shares of $95 par value, callable preferred shares for $110,000, with the right to call the shares on January 1, 2019 for $100 per share. The company calls all 900 shares on January 1, 2019. What is the necessary journal entry to record this transaction for 2019?

A) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 110,000 & \\\hline \text { Preferred Stock-\$95 Par } & & 85,500 \\\hline \text { Add. Paid-in Capital in Excess of Par-Preferred } & & 24,500 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Preferred Stock- } \$ 95 \text { Par } & 85,500 & \\\hline \text { Add. Paid-in Capital in Excess of Par-Preferred } & 24,500 & \\\hline \text { Common Stock } & & 110,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Preferred Stock-\$95 Par } & 85,500 & \\\hline \text { Add. Paid-in Capital in Excess of Par-Preferred } & 24,500 & \\\hline \text { Cash } & & 90,000 \\\hline \text { Additional Paid-in Capital from Retirement of Preferred } & & \\\hline \text { Stock } & & 20,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | l | } \hline \text { Cash } & 110,000 & \\\hline \text { Preferred Stock-\$95 Par } & & 24,500 \\\hline \text { Common Stock } & & 85,500 \\\hline\end{array}$$