A firm's common stock has par value of $0.25 per share. The firm issued 200,000 shares...

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A firm's common stock has par value of $0.25 per share. The firm issued 200,000 shares of new common stock this past accounting season at a market price of $15 per share. As a result of this issue, the equity portion of the firm's balance sheet will have the following change(s): 1. The common stock line will increase by $200,000 2. The capital surplus line will increase by $3,000,000 3. The capital surplus line will increase by $2,950,000 4. The common stock line will increase by $3,000,000 III and IV only I and Ill only Ill only IV only A firm's common stock has par value of $0.25 per share. The firm issued 200,000 shares of new common stock this past accounting season at a market price of $15 per share. As a result of this issue, the equity portion of the firm's balance sheet will have the following change(s): 1. The common stock line will increase by $200,000 2. The capital surplus line will increase by $3,000,000 3. The capital surplus line will increase by $2,950,000 4. The common stock line will increase by $3,000,000 III and IV only I and Ill only Ill only IV only

Answer rating: 100% (QA)

The changes in the equity portion of the firms balance sheet due to the issuance of 200000 share... View the full answer