Bach, Inc Issued 1,600 Shares of 8%, $140 Par Value, Preferred

Bach, Inc. issued 1,600 shares of 8%, $140 par value, preferred stock for $150,000. The board of directors declared preferred dividends for one year on December 30, to be paid in January. What journal entry is necessary to record the payment of dividends?

A) $$\begin{array} { | c | r | r | } \hline \text { Dividends - Preferred } & 17,920 & \\\hline \text { Dividends Payable - Preferred } & & 17,920 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Dividends Payable - Preferred } & 17,920 & \\\hline \text { Cash } & & 17,920 \\\hline\end{array}$$
C) $$\begin{array} { |l | r | r | } \hline \text { Dividends - Preferred } & 12,000 & \\\hline \text { Dividends Payable - Preferred } & & 12,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Dividends Payable - Preferred } & 12,000 & \\\hline \text { Cash } & & 12,000 \\\hline\end{array}$$