A company received $35,000 cash and issued common stock in exchange.How does this transaction affect the accounting equation?

Question

Quizplus · Accepted Answer

The transaction affects the accounting equation by increasing the asset Cash by $35,000 and increasing the equity account Common Stock by $35,000. Therefore, the correct choice is to add $35,000 to Cash and add $35,000 to Common Stock, which is option D.

A Company Received $35,000 Cash and Issued Common Stock in Exchange.How