Lyle white has decided ti incorporate her small lock rekeying business.Cash of 10,000 was invested in exchange for 10,000 common shares.How will this transaction affect the company's accounting equation?
Lyle white has decided ti incorporate her small lock rekeying business.Cash of 10,000 was invested in exchange for 10,000 common shares.How will this transaction affect the company's accounting equation?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Lyle white has decided ti incorporate her small lock rekeying business.Cash of 10,000 was invested in exchange for 10,000 common shares.How will this transaction affect the company's accounting equation?
Transcribed Image Text:Lyle White has decided to incorporate her small lock rekeying business. Cash of $10,000 was invested in exchange for 10,000 common
shares. How will this transaction affect the company's accounting equation?
O Cash will decrease by $10,000 and Common Shares will increase by $10,000.
O Shareholders' Equity will increase by $10,000 and Cash will decrease by $10,000.
O Cash will increase by $10,000 and Common Shares will increase by $10,000.
O Common Shares will increase by $10,000 and Retained Earnings will decrease by $10,000.
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