How does the transaction affect the companys balance sheet


Problem

ACE corporation sold 10,000 shares of its $10 par value common stock at a cash price of $12 per share. How does the transaction affect the company's balance sheet?

Group of answer choices

Increase Common Stock for $120,000.

Decrease Cash for $100,000.

Decrease Paid-in Capital in Excess of Par Value and Common Stock for $120,000.

Increase cash for $120,000, increaseCommon Stock for $100,000 and increase Paid-in Capital in Excess of Par Value, Common Stock for $20,000.

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Financial Accounting: How does the transaction affect the companys balance sheet
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