A Company Issues 1,000,000 Shares of $0

A company issues 1,000,000 shares of $0.50 par value, cumulative preferred stock for $12,000,000. The stated dividend is $1 per share. Which journal entry is needed for the sale?

A) debit Cash $12,000,000 and credit Preferred Stock $12,000,000
B) debit Cash $12,000,000, credit Preferred Stock $900,000 and credit Paid-in Capital in Excess of Par-Preferred $11,100,000
C) debit Cash $12,000,000 and credit Paid-in Capital in Excess of Par-Preferred $12,000,000
D) debit Cash $12,000,000 and credit Retained Earnings $12,000,000