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<p>A)Assets and owners' equity increase by $1,000 B) Assets and owners' equity decrease by $1,000 C) Assets and liabilities increase by $1,000 D) Assets and liabilities decrease by $1,000 E) No changes in total assets, liabilities, or owners' equity</p>
Hi all
Why choose E
Entry is
Debit / cash
Credit/ common shares
There is increase in assets and owner equity
Answer A
A is the right answer, providing stock in cash increase the assets and owner's equity.
b ) Assets and owner's equity decrease by $1000
E is the right answer.
Assumed100 shares of stock relate to short term investment held for trading.
So, by selling investment (current asset) and bringing another current asset (Cash) would not affect total assets.
correct answer is E
The correct answer answer E
E) No changes in total assets, liabilities, or owners' equity
Cash ...................... $1,000
Common stock ................ $1,000
So, choice A is the answer for this question
The Correct option is A) Assets and Owners' Equity increase by $1000
Answer C is correct - Assets and liabilities increase by $1000
