When a company issues stock as seen in the example why does that increase the common stock, preffered stock and apic account? since they are selling stock(giving up their stock)shouldn't that decrease the amounts in the stock accounts?

Homestead Oil Corp. was incorporated on January 1, 2016, and issued the following stock for cash: 810,000 shares of no-par common stock were authorized: 150,000 shares were issued on January 1, 2016, at $18.00 per share. 300,000 shares of $120 par value, 9.00% cumulative, preferred stock were authorized, and 57,000 shares were issued on January 1, 2016, at $140 per share. Net income for the years ended December 31, 2016 and 2017, was $1,400,000 and $2,410,000, respectively No dividends were declared or paid during 2016. However, on December 28, 2017, the board of directors of Homestead declared dividends of $1,650,000, payable on February 12,2018, to holders of record as of January 19, 2018. Award: 1.11 out of 1.11 points Show my answer lorida Alt e horizontal model for the issuance of common stock and preferred stock on January 1, 2016. (Use amounts with for increases and with -for decreases.) Balance Sheet Assets Liabilities Stockholders' Equity Net Income Cash 10,680,000 Common stock +Preferred stock 2,700,000! 6,840,000! ,140,000 Additional paid-in capital