AMB Company's tabular analysis at the beginning of October consisted of the following balances: During October the company issued additional shares of stock for proceeds of $2000.How would this transaction be recorded in the tabular analysis?

Question

AMB Company's tabular analysis at the beginning of October consisted of the following balances:  During October the company issued additional shares of stock for proceeds of $2000.How would this transaction be recorded in the tabular analysis?

Quizplus · Accepted Answer

Issuing additional shares of stock for proceeds of $2000 would result in an increase in Cash (asset) by $2000 and an increase in Common Stock (equity) by $2000. Therefore, the correct option would be to increase Cash by $2000 and increase Common Stock by $2000.

AMB Company's Tabular Analysis at the Beginning of October Consisted