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What would be the effect on the accounting equation

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Reference no: EM133081108

Question - If a company issues 1,000 shares of $1 par value common stock for $20 per share, what would be the effect on the accounting equation?

A. Increase assets and increase liabilities.

B. Increase assets and increase stockholders' equity.

C. Increase assets and decrease stockholders' equity.

D. Increase assets and increase revenue.

Reference no: EM133081108

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