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Abilene Western Shop began business on January 1, 2015. The corporate charter authorized issuance of...

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Accounting

Abilene Western Shop began business on January 1, 2015. The corporate charter authorized issuance of 10,000 shares of $2 par value common stock and 4,000 shares of $8 par value, 6% cumulative preferred stock. Abilene issued 2,400 shares of common stock for cash at $20 per share on January 2, 2015. What effect does the entry to record the issuance of stock have on total stockholders' equity?

Increase of $4,800

Decrease of $4,800

Increase of $48,000

Decrease of $48,000

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