Question
Oscar Company recorded journal entries for (1) issuing common stock for $150,000, (2) paying $20,000 of accounts payable, (3) incurring, but not yet paying, $15,000
Oscar Company recorded journal entries for (1) issuing common stock for $150,000, (2) paying $20,000 of accounts payable, (3) incurring, but not yet paying, $15,000 of wage expenses, (4) using up $3,000 of prepaid rent, and (5) declaring, but not yet paying, $10,000 of cash dividends on its common stock. What net effect do these entries have on Oscars total stockholders equity amount? Be sure your answer includes a total net $ amount AND indicates whether total stockholders equity increased, decreased, or did not change. (Hint if you make entries for the five transactions AND if you code each debit and each credit, you should be able to figure out the impact on stockholders equity.)
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