What is the impact of transaction on the financial statement

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Reference no: EM132962020

Oasis Inc sold and issued 1,000 preferred shares at $12 cash per share and 5,000 common shares at $10 cash per share

Problem 1: What is the impact of this transaction on the financial statement elements?

Option 1: $62,000 increase in current assets; $62,000 increase in retained earnings

Option 2: $62,000 increase in current assets; $62,000 increase in contributed surplus

Option 3: $62,000 decrease in retained earnings; $12,000 increase in contributed capital; $50,000 increase in contributed capital

Option 4: $62,000 decrease in retained earnings; $50,000 increase in contributed capital; $12,000 increase in contributed capital

Option 5: $62,000 increase in current assets; $62,000 increase in contributed capital

Reference no: EM132962020

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