Multiple Choice
Wheat's Market just issued $350,000 of new common stock at a price of $20 a share. How will this transaction affect the equity accounts on the firm's balance sheet if the par value is $1 per share?
A) The common stock account will increase by $350,000.
B) The common stock account will decrease by $17,500.
C) Paid in surplus will increase by $332,500.
D) Paid in surplus will increase by $350,000.
Correct Answer:
Verified
Correct Answer:
Verified
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