Poole Company began business on January 1, 2015. The corporate charter authorized issuance of 5,000 shares of

$1 par value common stock, and 4,000 shares of $8 par value, 6% cumulative preferred stock. None of the preferred shares were issued. On July 1, Poole issued 1,000 shares of common stock in exchange for two years rent on a retail location. The cash rental price is $2,400 per month and the rental period begins on July 1. The correct entry to record the July 1 transaction will

a. Increase Cash, $57,600; Decrease Prepaid Rent, $57,600 b. Increase Prepaid Rent, $57,600; Increase Common Stock, $57,600 c. Increase Prepaid Rent, $57,600; Increase Common Stock, $1,000; Increase Additional Paid-in Capital-- Common, $56,600 d. Increase Prepaid Rent, $57,600; Increase Common Stock, $5,000; Increase Additional Paid-in Capital-- Common, $52,600