Ogilvie Corp. issued 12,000 shares of no-par stock for $40 per share. Ogilvie was authorized to issue 35,000 shares. What effect will this event have on the elements of the company's financial statements?

The correct answer is increase assets and equity by $480,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

Issued share = 12,000 shares

Value per share = $40 per share

So, we can calculate the effect of this event are as follows:

So, Assets increase = 12,000 * $40 = $480,000

Equity increase = 12,000 * $40 = $480,000

Hence, this event can increase assets and equity by $480,000.