John Smith has decided to incorporate his small lock rekeying business. Cash of $10,000 was invested in exchange for 10,000 common shares. How will this transaction affect the companys accounting equation?

a) Cash will decrease by $10,000 and Common Shares will increase by $10,000.

b) Cash will increase by $10,000 and Common Shares will increase by $10,000.

c) Common Shares will increase by $10,000 and Retained Earnings will decrease by $10,000.

d) Shareholders' Equity will increase by $10,000 and Cash will decrease by $10,000.