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Wheat's Market Just Issued 17,500 New Shares of Common Stock

Question 63

Multiple Choice

Wheat's Market just issued 17,500 new shares of common stock at a price of $20 a share.How will this transaction affect the equity accounts on the firm's balance sheet if the par value is $1 per share?


A) The common stock account will increase by $350,000.
B) The common stock account will decrease by $17,500.
C) Paid in surplus will increase by $332,500.
D) Paid in surplus will increase by $350,000.

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