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Problem 1: The company Comunicaciones Alert S.A. issued shares for a total value of $ 200,000 on June 14 of this year. Fruni, the accounting advisor, must record this transaction and is not sure how to do it, so he asks you to advise him on the matter:
1-Assets decrease by using cash to pay the shares but increases the account of shares payable.
2-Assets increase when cash is received for the payment of the shares and the account of shares issued within the Capital account increases.
3-Assets decrease when cash is used to pay for the shares and total stockholders' equity decreases by the amount paid for the shares.
4-They decrease the assets when using cash to pay the shares but increases the capital account in the hands of the shareholders.
Financial Statement Analysis and Preparation
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