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

A company sells 1,000,000 shares of $0.50 par value preferred stock.The selling price for the stock was $3,000,000.The stated dividend is $1 per share and the stock is cumulative.What journal entry is needed for the sale?

A) debit Cash $3 million and credit Preferred Stock $3,000,000
B) debit Cash $3 million,credit Preferred Stock $500,000 and credit Paid-in Capital in Excess of Par-Preferred $2.5 million
C) debit Cash $3 million and credit Paid-in Capital in Excess of Par-Preferred $3 million
D) debit Cash $3 million and credit Retained Earnings $3 million