Multiple Choice
A firm just issued 15,000 new shares of stock with a market price of $14 per share and par value of $2 per share.Which one of these correctly states the resulting change in the equity accounts?
A) Capital surplus will increase by $180,000.
B) Retained earnings will decrease by $210,000.
C) Common stock will increase by $15,000.
D) Common stock will increase by $210,000.
Correct Answer:
Verified
Correct Answer:
Verified
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