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.