If a Company Issues 1,000 Shares of $1 Par Value

question 77

Multiple Choice

If a company issues 1,000 shares of $1 par value common stock for $20 per share,what would be the effect on the accounting equation?

• A) Increase assets and increase liabilities.
• B) Increase assets and increase revenue.
• C) Increase assets and increase stockholders’ equity.
• D) Increase assets and decrease stockholders’ equity.

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