Sue Shells,Inc.issues $400,000 in new stock.It later uses the cash received to purchase land.What accounts are affected by these two transactions?
A)Common Stock,Cash,and Land.
B)Common Stock,Cash,and Investments.
C)Cash,Common Stock,and Investments,and Land.
D)Common Stock,and Land.

Question

Quizplus · Accepted Answer

Issuing stock for cash means that Cash and Common Stock are affected.Using the cash to purchase land means that Cash and Land are affected.