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If a company issues 1,000 shares of common stock at a market price of $40...

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Accounting

If a company issues 1,000 shares of common stock at a market price of $40 per share, which of the following is the correct balance sheet effect?

Group of answer choices:

Increase cash by $40,000 and increase contributed capital by $40,000

Increase cash by $40,000 and increase earned capital by $40,000

Increase stock revenues by $40,000

Stock issuances are not reported on the balance sheet None of the above

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