Question

Flynn Corp., which is authorized to issue 25,000 shares of no-par common stock, issued 10,000 shares for $150,000. What effect will this event have on the accounting equation? Increase assets by $375,000 increase, equity by $375,000. Increase assets by $150,000, increase net income by $150,000. Increase assets by $150,000, increase equity by $150,000. Increase assets by $150,000, increase net income by $150,000 and increase assets by $150,000, increase equity by $150,000.

Answer 1

Answer:

Increase assets by $150,000, increase equity by $150,000.

The answer and procedures of the exercise are attached in a microsoft excel document.

Explanation:

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.