Garrison Company acquired $23,000 by issuing common stock.Which of the following accurately reflects how this event affects the company's accounting equation?
$$\begin{array} { | c | c | c | c | c | c | c | c | }
\hline & \text { Assets } & = & \text { Liabilities } & + & \begin{array} { c }
\text { Commnn } \
\text { Stuck }
\end{array} & + & \begin{array} { c }
\text { Retained } \
\text { Earnings }
\end{array} \
\hline \text { A } & 23,000 & = & \text { NA } & + & 23,000 & + & \text { NA } \
\hline \text { B. } & \text { NA } & = & 23,000 & + & ( 23,000 ) & + & \text { NA } \
\hline \text { C } & \text { NA } & = & \text { NA } & + & 23,000 & + & ( 23,000 ) \
\hline \text { D. } & 23,000 & = & \text { NA } & + & \text { NA } & + & 23,000 \
\hline
\end{array}$$

Question

Garrison Company acquired $23,000 by issuing common stock.Which of the following accurately reflects how this event affects the company's accounting equation?
$$\begin{array} { | c | c | c | c | c | c | c | c | } 
\hline & \text { Assets } & = & \text { Liabilities } & + & \begin{array} { c } 
\text { Commnn } \
\text { Stuck }
\end{array} & + & \begin{array} { c } 
\text { Retained } \
\text { Earnings }
\end{array} \
\hline \text { A } & 23,000 & = & \text { NA } & + & 23,000 & + & \text { NA } \
\hline \text { B. } & \text { NA } & = & 23,000 & + & ( 23,000 ) & + & \text { NA } \
\hline \text { C } & \text { NA } & = & \text { NA } & + & 23,000 & + & ( 23,000 ) \
\hline \text { D. } & 23,000 & = & \text { NA } & + & \text { NA } & + & 23,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Issuing common stock increases both assets (cash) and stockholders' equity (common stock).

Garrison Company Acquired $23,000 by Issuing Common Stock A) Option a B) Option B C) Option C D)

Garrison Company Acquired $23,000 by Issuing Common Stock A) Option a
B) Option B
C) Option C
D)