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Yakvenalex [24]
3 years ago
11

If Baldwin issued 1000 shares of common stock at last year's end price, the effect on the balance sheet would be:________

Business
1 answer:
natta225 [31]3 years ago
5 0

Answer:

d) Equity would increase by $63,228

Explanation:

We are not given any information about stock prices, but we do not need them. Whenever new common stocks are issued, stockholders' equity will increase (always).

Retained earnings are affected by net income and dividends:

  • net income increases retained earnings
  • dividends decrease retained earnings
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Explanation:

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