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Referring to Case Study 2 for Gifts Galore, Inc.: If each of the two shareholders paid in additional capital of $ 5 , 0 0

Referring to Case Study 2 for Gifts Galore, Inc.: If each of the two shareholders paid in additional capital of $5,000, how will that affect Schedule L?
Line 24, retained earnings, will be decreased by $10,000.
Only line 1, cash, will be increased by $10,000.
Only line 23, additional paid-in capital, will increase by $10,000.
Line 1, cash, will increase by $10,000 and $10,000 will be entered on line 23.

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