Linda Masson has decided to incorporate her small jewellery business. The documents of incorporation state that she has been issued 5,000 shares at a cost of $5 each. How will this transaction affect the companys accounting equation?

Question 30 options:

	Cash will increase by $25,000 and Common Shares will increase by $25,000.
	Cash will decrease by $25,000 and Common Shares will increase by $25,000.
	Common Shares will increase by $25,000 and Retained Earnings will decrease by $25,000.
	Shareholders' Equity will increase by $25,000 and Cash will decrease by $25,000.