Garrison Company acquired $23,000 by issuing common stock. Which of the following accurately reflects how this event affects the company's horizontal financial statements model?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Garrison Company acquired $23,000 by issuing common stock. Which of the following accurately reflects how this event affects the company's horizontal financial statements model? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Option C correctly reflects that the issuance of common stock would result in an increase in the company's total assets and total equity, but would not affect the company's total liabilities. Therefore, both the balance sheet and the statement of changes in equity would be affected, but the income statement would remain unchanged.

Garrison Company Acquired $23,000 by Issuing Common Stock