Answer:
Total Stockholders’ Equity is in error by: $25.
Explanation:
It is important to remember that Stockholders’ Equity consist of Retained Profit and Common Stock and effect on the errors on these elements ultimately affects Stockholders’ Equity.
The correct entry for expiration of  prepaid insurance
Insurance Expense $12 (debit)
Prepaid Insurance $12 (credit)
Effect on net profit of the error : overstatement of profit by $12
Effect on common stock  of the error : none
The correct entry for Issuance of  bonds :
Investments in Bonds $12 (debit)
Cash $12 (credit)
Effect on net profit of the error : none
Effect on common stock  of the error : overstatement  by $13
Conclusion :
Total Effect on Stockholders’ Equity = Overstatement of $25.
