Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a company issues 1,000 shares of $2 par value common stock at a market price of $30 per share, which of the following is

If a company issues 1,000 shares of $2 par value common stock at a market price of $30 per share, which of the following is the correct balance sheet entry?

A.

Increase revenues by $30,000

B.

Increase cash by $30,000 and increase contributed capital by $30,000

C.

Increase common stock and cash by $2,000

D.

Increase cash by $30,000 and increase earned capital by $30,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones of Financial Accounting

Authors: Jay Rich, Jeff Jones

4th edition

978-1337690881, 9781337669450, 1337690880, 1337690899, 1337669458, 978-1337690898

More Books

Students also viewed these Accounting questions

Question

What was the Sandinista National Liberation Front (FSLN)?

Answered: 1 week ago

Question

What was the influence of the individual experimenter?

Answered: 1 week ago