Murphy Parts Shop began business on January 1, 2007. The corporate charter authorized issuance of 10,000 shares of $2 par value common stock and 4,000 shares of $8 par value, 6 percent cumulative preferred stock. Murphy issued 2,400 shares of common stock for cash at $20 per share on January 2, 2007. What effect does the entry to record the issuance of stock have on total stockholders’

equity?

a. increase of $4,800

b. decrease of $4,800

c. decrease of $48,000

d. increase of $48,000