On February 2, 2013, the Metro Art Supply Corporation issued 9,000 shares of no-par stock for $17 per share. Within two hours of the issue, the stock's price jumped on the UMSL stock exchange to $21 per share. Which of the following answers describes the effect of the February 2, 2013 transaction?

Question

Quizplus · Accepted Answer

Assets (cash) and common stock increase by $153,000 (9,000 x $17). The cash inflow is a financing activity. The increase in market price following the issuance does not affect the company's financial statements.

On February 2, 2013, the Metro Art Supply Corporation Issued