if-a-company-issues-new-shares-worth-100000-how-does-this-transaction-affect-the

Question

If a company issues new shares worth $100,000, how does this transaction affect the fundamental accounting equation?

Accepted Answer

Assets increase by $$100,000; Equity increases by 100$$,000; Liabilities remain unchanged.

Answer

Assets increase by $$100,000; Liabilities increase by 100$$,000; Equity remains unchanged.

Answer

Assets increase by $$100,000; Liabilities decrease by 100$$,000; Equity remains unchanged.

Answer

Assets remain unchanged; Liabilities increase by $$100,000; Equity increases by 100$$,000.

If a company issues new shares worth \$100,000, how does this transaction affect the fundamental accounting equation?