A Company Sold 200 Shares of Common Stock with a Par

Multiple Choice

A company sold 200 shares of common stock with a par value of $5 at a price of $13 per share.What is the effect on the accounts of this transaction?

A) Increase cash $2,600; increase retained earnings $2,600
B) Increase cash $1,000; increase common stock $1,000
C) Increase cash $2,600; increase common stock $1,000 and increase paid-in capital $1,600
D) Increase cash $2,600; increase common stock $1,600 and increase paid-in capital $1,000