A Firm Just Issued 15,000 New Shares of Stock with a Market

question 76

Multiple Choice

A firm just issued 15,000 new shares of stock with a market price of $14 per share and par value of $2 per share.Which one of these correctly states the resulting change in the equity accounts?

• A) Capital surplus will increase by $180,000.
• B) Retained earnings will decrease by $210,000.
• C) Common stock will increase by $15,000.
• D) Common stock will increase by $210,000.

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Definitions:

Mitochondrial Cristae

The inner membrane folds of mitochondria that increase the surface area for ATP production processes.

Preparatory Reaction

A phase in cellular respiration where pyruvate is converted into acetyl-CoA before entering the citric acid cycle.

Coenzyme A

A cofactor that plays a critical role in the synthesis and oxidation of fatty acids, as well as in the metabolism of carbohydrates and proteins.

Electron Transport Chain

A series of complexes that transfer electrons through a membrane within mitochondria to form a gradient used to produce ATP.