Eagle Eye, Inc., a corporation, received an additional investment of $6,000 cash in exchange for shares of common stock. How does this transaction affect Eagle Eye's accounts? a.Increase common stock and decrease retained earnings by $6,000 each b.Increase common stock and increase cash by $6,000 each c.Increase common stock and increase revenue by $6,000 each d.Increase in stock expense and decrease cash by $6,000 each
Eagle Eye, Inc., a corporation, received an additional investment of $6,000 cash in exchange for shares of common stock. How does this transaction affect Eagle Eye's accounts? a.Increase common stock and decrease retained earnings by $6,000 each b.Increase common stock and increase cash by $6,000 each c.Increase common stock and increase revenue by $6,000 each d.Increase in stock expense and decrease cash by $6,000 each
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Eagle Eye, Inc., a corporation, received an additional investment of $6,000 cash in exchange for shares of common stock. How does this transaction affect Eagle Eye's accounts?
a.Increase common stock and decrease retained earnings by $6,000 each
b.Increase common stock and increase cash by $6,000 each
c.Increase common stock and increase revenue by $6,000 each
d.Increase in stock expense and decrease cash by $6,000 each
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