DAE Parts Shop began business on January 1 2011 The
DAE Parts Shop began business on January 1, 2011. The corporate charter authorized issuance of 20,000 shares of $5 par value common stock and 5,000 shares of $10 par value, 5 percent cumulative preferred stock. DAE issued 12,000 shares of common stock at $25 per share on January 2, 2011. What effect does the entry to record the issuance of stock have on total stockholders’ equity?
a. Increase of $120,000
b. Increase of $150,000
c. Increase of $300,000
d. Increase of $340,000
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