On January 2, Year 1, Torres Corporation issued 20,000 shares of $10 par-value common stock for $11 per share. Which of the following statements is true?

A. The paid-in capital in excess of par value account will increase by $20,000.
B. Total equity will increase by $200,000.
C. The cash account will increase by $200,000.
D. The common stock account will increase by $220,000.


Answer: A

Business

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