a. 1. Railroad Company received $2,000,000 for the issuance of common stock. How does this transaction impact Railroad Company's income statement? Net income increases. b. Net income decreases. C. This transaction does not affect the income statement. d. Retained earnings increases. 2. Railroad Company reported $150,000 of net income during 2019. How will this impact the December 31, 2019 balance sheet? a. Retained earnings will increase by $150,000. b. Retained earnings will decrease by $150,000. C. Total stockholders' equity will decrease by $150,000. d. Common stock will increase by $150,000. 3. In which situation will Anna's Catering recognize revenue in September? a. Anna's Catering agreed to cater an office lunch for All Business in October. b. Anna's Catering received a $450 deposit to cater a wedding reception next summer. C. Anna's Catering catered a dinner meeting for Arts and Such on September 4 and billed the customer $725. d. Anna's Catering collected $800 from Football Corporation for a meal that was catered in August