easy · Financial Accounting stockholders-equity
Vanguard Corp issues 10,000 shares of $0.01 par value common stock for a total cash price of $150,000.
Which of the following accurately describes the impact on the stockholders' equity section of the balance sheet?
- Common Stock increases by $150,000 total; Additional Paid-In Capital is left unaffected.
- Common Stock increases by $100; Retained Earnings increases by $149,900 instead.
- Cash increases by $150,000; Common Stock increases by $10,000 for the shares.
- Common Stock increases by $100; Additional Paid-In Capital increases by $149,900.
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