Ask Question
BusinessBusiness
17 June, 14:14

If Baldwin issued 1000 shares of common stock at last year's end price, the effect on the balance sheet would be: Select: 1 Retained earnings would increase by $40,076 Equity would decrease by $4,008 Equity would increase by $40,076 Retained earnings would increase by $4,008

+5
Answers (1)
  1. 17 June, 15:18
    0
    Equity would increase by $40,076

    Explanation:

    A funds could be raise from different sources by a company which include:

    Shares Issuance Debt financing. Internal sources of finances (retained earnings)

    If a company issues common shares It will effect the Common stock value and Add-in-capital excess of par common shares account value will be changed. Retained earning will not be changes in case of issuance of common share but it can be in case of stock dividend.

    So, from the given option most appropriate is increase in the equity value.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If Baldwin issued 1000 shares of common stock at last year's end price, the effect on the balance sheet would be: Select: 1 Retained ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Agribusiness dominance of the food production industry led to a. high wages for workers on large farms. b. small famers allying against agribusiness. c. migration of poor rural people to cities. d. widespread wealth in rural areas.
Answers (1)
A store's buyer places an order for three dozen coffee mugs at a cost of $3.75 each, four dozen plastic glasses at a cost of $1.00 each, and two dozen insulated soft drink holders at a cost of $0.50 each. The delivery charge for this order is $7.50.
Answers (1)
Oriole Corp. will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years. Thereafter, management expects the dividend growth rate to be constant at 8 percent. If the required rate of return is 17.
Answers (1)
Nachman Industries just paid a dividend of D 0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%.
Answers (1)
Proper segregation of functional responsibilities calls for separation of: A. custody, execution, and reporting. B. authorization, recording, and custody. C. authorization, payment, and recording. D. authorization, execution, and payment.
Answers (1)
New Questions in Business
The following transactions occurred during the first year of operations for Cougar Corp. for each transaction prepare the year-end adjusting journal entry. Note: these ARE adjusting entries. a. Cougar Corp.
Answers (1)
Given the following information for a one-year project, answer the following questions. Recall that PV is the planned value, EV is the earned value, AC is the actual cost, and BAC is the budget at completion.
Answers (1)
Preferred Stock, 7%, $115 par $1,170,000 Common Stock, $1.50 par 300,000 Paid in capital in excess of par, common stock 1,200,000 Retained earnings 2.500.
Answers (1)
On January 1, 2013, M. Johanson Company purchased equipment for $36,000. The company is depreciating the equipment at the rate of $500 per month. The book value of the equipment at December 31, 2013 is:A) $0. B) $6,000. C) $30,000. D) $36,000.
Answers (1)
Department B had a beginning inventory of 2,400 units, 25% completed; an ending inventory of 2,700 units, 2/3 completed, and received 4,900 units during the period from Department A.
Answers (1)
Home » Business » If Baldwin issued 1000 shares of common stock at last year's end price, the effect on the balance sheet would be: Select: 1 Retained earnings would increase by $40,076 Equity would decrease by $4,008 Equity would increase by $40,076 Retained
Sign Up Forgot Password?