If a company issues 1,000 shares of $2 par value common stock at a market price
ID: 2479643 • Letter: I
Question
If a company issues 1,000 shares of $2 par value common stock at a market price of $30 per share, which of the following is the correct balance sheet entry?
Increase revenues by $30,000
Increase cash by $30,000 and increase contributed capital by $30,000
Increase common stock and cash by $2,000
Increase cash by $30,000 and increase earned capital by $30,000
A.Increase revenues by $30,000
B.Increase cash by $30,000 and increase contributed capital by $30,000
C.Increase common stock and cash by $2,000
D.Increase cash by $30,000 and increase earned capital by $30,000
Explanation / Answer
B.Increase cash by $30,000 and increase contributed capital by $30,000
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