Wheat's Market Just Issued $350,000 of New Common Stock at a Price

question 60

Multiple Choice

Wheat's Market just issued $350,000 of new common stock at a price of $20 a share. How will this transaction affect the equity accounts on the firm's balance sheet if the par value is $1 per share?

• A) The common stock account will increase by $350,000.
• B) The common stock account will decrease by $17,500.
• C) Paid in surplus will increase by $332,500.
• D)Paid in surplus will increase by $350,000.

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Definitions:

Good Business Writing

The skill of communicating ideas effectively, clearly, and professionally in written business contexts.

Formal Style

A mode of communication characterized by a structured, professional tone and use of proper grammar and vocabulary, often used in business, academic, or official contexts.

Third-person Pronouns

Pronouns used to refer to people or things other than the speaker or listener, such as "he," "she," "it," "they."

Poor Writers

Individuals who struggle with writing, often due to lack of practice, understanding, or skill in composing coherent text.