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A company sold 2 0 0 shares of common stock with a par value of $ 5 at a price of $ 1 3 per

A company sold 200 shares of common stock with a par value of $5 at a price of $13 per share. What is the effect on the accounts of this transaction?
a. Increase cash $2,600; increase common stock $1,600 and increase paid-in capital $1,000
b. Increase cash $2,600; increase common stock $1,000 and increase paid-in capital $1,600
c. Increase cash $1,000; increase common stock $1,000
d. Increase cash $2,600; increase retained earnings $2,600

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