Multiple Choice
Penny's Cafe began operations on March 1,2012.The corporate charter authorized the issuance of 3,000 shares of $2 par value common stock and 1,000 shares of $3 par value,8% cumulative preferred stock.The company's fiscal year ends on February 28.Penny's sold 500 shares of common stock at $6 per share on April 1.What impact does the entry to record the April 1 transaction have on total stockholders' equity?
A) No effect
B) Increase by $1,000
C) Increase by $3,000
D) Increase by $6,000
Correct Answer:
Verified
Correct Answer:
Verified
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