1. If a company issues 2,500 shares of common stock at a market price of $32 per share, which of the following is the correct balance sheet effect?

a. Increase cash by $80,000 and increase contributed capital by $80,000

b. Increase cash by $80,000 and increase earned capital by $80,000

c. Increase stock revenues by $80,000

d. Stock issuances are not reported on the balance sheet

e. None of the above