Shares of common stock at market price

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Reference no: EM132003504

1. If a company issues 1,000 shares of common stock at a market price of $20 per share, which of the following is the correct balance sheet effect?

A. Increase cash by $20,000 and increase contributed capital by $20,000

B. Increase cash by $20,000 and increase earned capital by $20,000

C. Increase stock revenues by $20,000

D. Stock issuances are not reported on the balance sheet

E. None of the above

2. How long would it take $100 to double if it were invested in a bank that pays 8% per year?

A. 6.87 years

B. 8.28 years

C. 9.01 years

D. 10.09 years

E. 12.46 years

Reference no: EM132003504

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