Valor Company issued 5,000 shares of $1 par common stock for $30 per share, providing the company with $150,000 in cash. What effect, in addition to the increase in cash, does this transaction have on the accounting equation for Valor?

a. Common Stock increases $150,000.
b. Common Stock increases $5,000? Additional Paid­in Capital—Common increases $145,000.
c. Common Stock increases $5,000; Retained Earnings increases $145,000.
d. Common Stock increases $5,000; Gain on Sale of Common Stock increases $145,000.


b

Business

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