The effect on the accounting equation is a(n): increase in assets and equity by $10,000 each
What is accounting equation?
The accounting equation shows that all assets of a company are financed by combination of equity of the owners(an increase in equity of $10,000 in this case) and the liabilities, which are funds provided by external financiers.
In this case, the receipt of $10,000 from common stock issuance means that the cash balance, which is an asset has increased by $10,000, also, the equity of the owners has also increased by the same amount.
Find out more about accounting equation on:brainly.com/question/17090843
#SPJ1
