A company received $31,000 cash and issued common stock in exchange. How does this transaction affect...
Homework Answers
The accounting equation is mentioned hereunder:
Assets= liabilities + Stockholders equity
Now under the given question the the company has issued shares and received cash for the same for $31000.
As per the given details the assets will increase by $31000 as cash is an item listed under assets head on the left side of accounting equation. And for the other side the stockholders equity will increaseby $31000 as shares issued is an item listed under shareholders capital on the right side of the accounting equation.
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company received $31,000 cash and issued common stock in exchange.
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