f a company issues 10,000 shares of $2 par value common stock at a market price of $30 per share, which of the following is the correct balance sheet entry?   A. Increase revenues by $300,000   B. Increase common stock and cash by $20,000   C. Increase cash by $300,000 and increase common stock by $20,000   D. Increase cash by $300,000 and increase additional paid-in capital by $20,000

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.