Clay and Lora Each Invest $15,000 in Deyer, Inc

Multiple Choice

Clay and Lora each invest $15,000 in Deyer, Inc. and are given shares of stock as evidence of their ownership interest. What effect does this transaction have on the accounting equation of Deyer?

A) Assets and liabilities increase
B) Assets and contributed capital increase
C) Liabilities increase and retained earnings decrease
D) Assets and liabilities decrease