Composite, Inc

Multiple Choice

Composite, Inc., a firm specializing in building materials, engaged in the following transaction during 2013: issued 2,000 shares of common stock for $7,500 million in cash.Indicate the effects of the transaction on the balance sheet equation.(Composite Inc.applies U.S.GAAP financial reporting standards, and reports its results in millions of dollars.)

A) Liabilities +$7,500 million; Shareholders' Equity -$7,500 million
B) Liabilities +$7,500 million; Shareholders' Equity +$7,500 million
C) Assets +$7,500 million ; Liabilities +$7,500 million
D) Assets +$7,500 million ; Shareholders' Equity +$7,500 million
E) Assets -$7,500 million ; Liabilities -$7,500 million