It will increase, which is why the equity section increases. For example, if 100 shares of $10 par common stock are issued at $10, the entry is:

Cash.................................1,000
Common Stock..............................1,000

Just for your info (not this problem), if they were issued at $12, the entry would be:

Cash..................................1,200
Common Stock........................................1,000
Additional Paid-In Capital.............................200

Which of the following should be shown in in the profit and loss appropriation account of a limited company...

A)directors remuneration paid during the current accounting period in respect of the same period

B)debenture interest paid during the current accounting period in respect of the same period

C)dividends paid during the current accounting period in respect of the same period

D)all of the above

Please read the following announcement.

https://www.askmehelpdesk.com/accoun...ng-font-p.html

I notice you have many questions in here, but I haven't read one yet where you indicate what you think the correct answer should be. If you will show your work (meaning both what you think the answer is and why), we will help you to understand those questions where you are having problems. Thanks.

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