If a company issues 1,000 shares of common stock at a market price of $40 per share, which of the following is the correct balance sheet effect?

Group of answer choices

Increase cash by $40,000 and increase contributed capital by $40,000

Increase cash by $40,000 and increase earned capital by $40,000

Increase stock revenues by $40,000

Stock issuances are not reported on the balance sheet

None of the above