Daily Grind, Inc. began by selling 15,000 of common stock to its ...

[rlane42]

Daily Grind, Inc. began by selling 15,000 of common stock to its owners in exchange for cash. The effect of this transaction on the accounting equation is:
 
  A) Total shareholders' equity
   Total assets Total liabilities Contributed capital Retained earnings
   15,000 cash No effect No effect 15,000 revenue
 
  B) Total shareholders' equity
   Total assets Total liabilities Contributed capital Retained earnings
   15,000 cash No effect 15,000 common stock No effect
 
  C) Total shareholders' equity
   Total assets Total liabilities Contributed capital Retained earnings
   No effect 15,000 cash 15,000 cash No effect
 
  D) Total shareholders' equity
   Total assets Total liabilities Contributed capital Retained earnings
   15,000 cash 15,000 cash No effect Increase

Question 2

Multiple-step income statements show
 a. gross profit but not income from operations
  b. neither gross profit nor income from operations
  c. both gross profit and income from operations
  d. income from operations but not gross profit

[Pswine]

Answer to Question 1

B

Answer to Question 2

c

[rlane42]

Excellent

[mohan]

Thanks for the timely response, appreciate it