a-business-receives-40000-in-cash-from-an-owner-and-issues-common-stock-what-are

Question

A business receives $40,000 in cash from an owner and issues common stock. What are the dual effects on the accounts?

Accepted Answer

Cash increases by $$40,000; Common Stock increases by 40$$,000.

Answer

Cash increases by $$40,000; Expenses increase by 40$$,000.

Answer

Cash decreases by $$40,000; Common Stock increases by 40$$,000.

Answer

Cash increases by $$40,000; Liabilities increase by 40$$,000.

A business receives \$40,000 in cash from an owner and issues common stock. What are the dual effects on the accounts?