USA Preferred Share Grant

[starry night]

I am faced with a question about granting preferred shares. Specifically, if $100 of preferred shares are being granted that pay a 4% dividend, what is the debit? Assuming that $100 is credited to preferred stock.

It is worth nothing these shares are being "granted" not "issued" or "converted." So the debit is not $100 of cash or $100 of common stock.

Thanks in advance for help.