Wendy Walia Owns 500 Shares of Rhodes Water Company

Wendy Walia owns 500 shares of Rhodes Water Company.The capital stock of Rhodes Water Company has a par value of $3 per share.Wendy Walia sells her 500 shares of Rhodes Water stock to Steve Matelski for $10 per share.The effect of this transaction on Rhodes Water Company would be to

A) increase the cash account by $5,000 and increase the capital stock account by $5,000.
B) increase the cash account by $5,000,increase the capital stock account by $1,500,and increase the paid-in capital in excess of par account by $3,500.
C) increase the cash account by $5,000 and decrease the capital stock account by $5,000.
D) increase the cash account by $5,000,decrease the capital stock account by $1,500,and decrease the paid-in capital in excess of par account by $3,500.
E) Rhodes Water Company would not record this transaction but would note the change in ownership.