A Company Issues $20 Million in New Stock

Multiple Choice

A company issues $20 million in new stock.It later uses this money to pay off promissory notes.How many different accounts and which account names are affected by these two transactions?

A) 3 accounts are affected: contributed capital,cash,and notes payable.
B) 4 accounts are affected: contributed capital,cash,liabilities,and accounts payable.
C) 3 accounts are affected: cash,assets,and accounts payable.
D) 3 accounts are affected: contributed capital,investments,and accounts payable.