Team Shirts issued 20,000 shares of stock for $20 per share.This transaction increased Cash $400,000 and increased ________ $400,000.

Question

Quizplus · Accepted Answer

Issuing stock for cash increases both Cash (an asset) and Paid-in capital (an equity account) by the amount received. In this case, $400,000 is the total cash received from issuing 20,000 shares at $20 each, so Paid-in capital is increased by the same amount.

Team Shirts Issued 20,000 Shares of Stock for $20 Per