Major Sports plans to raise $5,000,000 in an initial public offering of its common stock. The company is considering three options:

Determine the financial statement effects for each option.

1. Issue 100,000 shares of $1 par value common stock for $50 per share.

2. Issue 500,000 shares of $1 par value common stock for $10 per share.

3. Issue 1,000,000 shares of $1 par value common stock for $5 per share.