Company X receives $10,000 from issuing common stock to its owners. The effect on the accounting equation is a(n) _____.

Respuesta :

Based on the information given the effect on the accounting equation would be: Assets increase $10,000 and Stockholder's equity increase $10,000.

Effects on accounting equation:

If a company receives the amount of $10,000 from issuing common stock to its owners the effect of the transaction on the accounting equation would be: Assets will  increase by the amount of $10,000 and Stockholder's equity will increase by $10,000.

Effect on Accounting equation:

Assets increase $10,000

Stockholder's equity increase $10,000

Inconclusion the effect on the accounting equation would be: Assets increase $10,000 and Stockholder's equity increase $10,000.

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