Fairfield Corporation issues 100,000 shares of $1 par value common stock for $10 per share. This transaction: a. increases assets and increases liabilities.

b. increases assets and decreases liabilities.

c. increases assets and increases stockholders' equity.

d. increases assets and decreases stockholders' equity.

Question

Business

Trouble

5 November, 05:10

Fairfield Corporation issues 100,000 shares of $1 par value common stock for $10 per share. This transaction: a. increases assets and increases liabilities.

b. increases assets and decreases liabilities.

c. increases assets and increases stockholders' equity.

d. increases assets and decreases stockholders' equity.

+2

Answers (1)

Know the Answer?

Lyla · Answer 1

C

Explanation:

When a company issues shares they receive money which is an asset and the number of shares issued represent shareholders' interest in the company. I. e shareholders equity. So the correct answer is C.