A Bank Sells Shares of Its Common Stock with a Par

question 7

Multiple Choice

A bank sells shares of its common stock with a par value of $100 for $200 in the market.Which two accounts on the bank's balance sheet are going to be affected?

• A)Retained earnings and surplus accounts
• B)Subordinated notes and debentures and commons stock outstanding accounts
• C)Retained earnings and common stock outstanding accounts
• D)Common stock outstanding and surplus accounts
• E)Only the common stock outstanding account

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