Wally, Inc issued 500 shares of $10 par preferred stock at $83 a share. Each share had a warrant attached that allowed the holder to purchase one share of $5 par common stock for $15. Soon after the preferred stock was issued, the preferred stock was selling ex-rights for $64 a share, and the warrants were selling for $16 each. The entry to record the issuance of the preferred stock would include
a
A) debit to Retained Earnings for $8,300.
B) credit to Additional Paid-in Capital on Preferred Stock for $28,200.
C) debit to Common Stock Warrants for $8,300.
D) credit to Additional Paid-in Capital on Common Stock for $8,300.
B
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