If a Company Issues 20,000 Ordinary Shares Which Are Sold

Multiple Choice

If a company issues 20,000 ordinary shares which are sold at $4 per share, the effect on the accounting equation is:

A) increase in cash $80,000; increase in liabilities $80,000.
B) increase in cash $80,000; decrease in shareholder's equity $80,000.
C) increase in cash $80,000; increase in shareholder's equity $80,000.
D) none of the above.