Refer to Lanthier's Heating & Air. On June 5, 2014, the company issued 2,400 shares of common stock for $20 per share. What effect does the entry to record the stock issuance have on total stockholders' equity?

Question

Quizplus · Accepted Answer

When the company issued 2,400 shares of common stock for $20 per share, they received $48,000 ($20 x 2,400) in cash. This increases the stockholders' equity by $48,000. Therefore, the correct answer is C, an increase of $48,000.