A Company Issues $50 Million in New Stock

Multiple Choice

A company issues $50 million in new stock.The company later uses this money to buy construction machinery.How many accounts will be affected by these transactions and which particular account names are most likely to be used to record the effects of these transactions?

A) 3 accounts affected: Contributed Capital,Cash,and Equipment.
B) 4 accounts affected: Contributed Capital,Cash,Supplies and Accounts Payable.
C) 3 accounts affected: Cash,Accounts Receivable,and Equipment.
D) 3 accounts affected: Contributed Capital,Investments,and Notes Payable.