There would be an increase in assets and equity amounting to $12,000.00
The accounting equation is: ASSETS = LIABILITIES + OWNER'S EQUITY
Since the company receives $12,000 from its sole stockholder, this means that the $12,000 received is either in a form of cash or issued check. Cash is an asset thus the assets value has increased. Its corresponding increase results to the increase in Owner's Equity. Liability remains the same.
