Recording a stock issuance in exchange for cash involves:
A) Increasing Cash and increasing Notes Payable
B) Increasing Cash and increasing Dividends
C) Increasing Cash and increasing Common Stock
D) Decreasing Common Stock and decreasing Cash
E) None of the above

Question

Quizplus · Accepted Answer

When a company issues stock in exchange for cash, it increases its cash account (an asset) and increases its common stock account (an equity account) to reflect the issuance of equity to investors.

Recording a Stock Issuance in Exchange for Cash Involves