Multiple Choice
Cholla Co.issued 20,000 shares of no-par value common stock at $10 per share.Mr.Ivanhoe,the bookkeeper,recorded the transaction with a $200,000 debit to Cash and $200,000 credit to Common Stock.Which of the following statements about this situation is correct?
A) Total assets will be overstated.
B) This entry is correct.
C) Total stockholders' equity will be overstated.
D) Total liabilities will be understated.
Correct Answer:
Verified
Correct Answer:
Verified
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