If a company issues 2,500 shares of common stock at a market price of $48 per share, which of the following is the correct balance sheet effect?

a.
increase cash by $120,000 and increase contributed capital by $120,000

b.
increase cash by $120,000 and increase earned capital by $120,000

c.
increase stock revenues by $120,000

d.
stock issuances are not reported on the balance sheet

e.
none of the above

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