Lanthier's Heating & Air This company began business on June 1,2014.The articles of incorporation authorize issuance of 10,000 shares of $2 par common stock and 5,000 shares of $8 par 6% cumulative preferred stock.
-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

The issuance of 2,400 shares of common stock at $20 per share results in an increase in total stockholders' equity by $48,000 (2,400 shares x $20 per share).

Lanthier's Heating & Air This Company Began Business on June