Canton, Inc. issued 10,000 shares of $1 par value common stock at $10 per share....
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Accounting
Canton, Inc. issued 10,000 shares of $1 par value common stock at $10 per share. Mr. Smart, the bookkeeper, recorded this transaction with a $100,000 debit to Cash and a $100,000 credit to Common stock. As a result of this entry:
A) Additional Paid-In Capital will be understated.
B) equity will be overstated.
C) total stockholders' equity will be understated.
D) total assets will be overstated.
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