If a company issues 1,000 shares of $1 par value common stock for $30 per share,what would be the effect on the accounting equation?

Question

Quizplus · Accepted Answer

The issuance of common stock results in an increase in assets, specifically cash (increase in assets), and an increase in stockholders' equity, specifically common stock (increase in stockholders' equity). There is no effect on liabilities or revenue in this transaction.

If a Company Issues 1,000 Shares of $1 Par Value