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gulaghasi [49]
3 years ago
6

How would the issuance of common stock for cash affect the accounting​ equation?

Business
1 answer:
shepuryov [24]3 years ago
3 0

Answer:

Explanation:

The journal entry to record the given transaction is shown below:

Cash A/c Dr XXXXX

    To Common stock A/c XXXXX

(Being the issuance of the common stock is recorded)

The accounting equation is

Total Assets = Total liabilities + Stockholder equity

Cash Increased = No effect    + Increased

Therefore, the cash account and the common stock is increased.

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