A firm just issued 15,000 new shares of stock with a market price of $14 per share and par value of $2 per share.Which one of these correctly states the resulting change in the equity accounts?

Name: A firm just issued 15,000 new shares of stock with a market price of $14 per share and par value of $2 per share.Which one of these correctly states the resulting change in the equity accounts?
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Question

Quizplus · Accepted Answer

Increase in common stock = 15,000 × $2 = $30,000Increase in capital surplus = 15,000 × ($14 − 2) = $180,000

A Firm Just Issued 15,000 New Shares of Stock with a Market