Murton Industries
Murton Industries, Inc. reported the following information on its recent balance sheet.
Common stock, $10 par, 100,000 shares authorized, 75,000 shares issued and outstanding
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Refer to the information for Murton Industries. What is the effect on Murton's accounting equation of issuing 1,000 additional shares of common stock at $15 per share?
A) Assets increase $15,000, liabilities increase $5,000, and equity increases $10,000
B) Assets increase $15,000, liabilities remain unaffected, and equity increases $15,000
C) Assets decrease $10,000, liabilities remain unaffected, and equity increases $10,000
D) Assets decrease $15,000, liabilities decrease $5,000, and equity decrease $10,000
Correct Answer:
Verified
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