Joe Anthony Company recently issued 20,000 shares of $1.00 par value common stock for $40,000.This transaction will increase the ________.
A) Common stock account by $20,000
B) Common stock account by $40,000
C) Paid in capital in excess of par account by $40,000
D) Retained earnings account by $40,000

Question

Quizplus · Accepted Answer

The common stock account is increased by the par value of the shares issued, which is $1.00 per share for 20,000 shares, totaling $20,000.

Joe Anthony Company Recently Issued 20,000 Shares of $1