To expand operations, Aragon Consulting issued 1,950 shares of previously unissued common stock with a par value of $2. The price for the stock was $50 per share. Using the A=L+OE?

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637 viewsOctober 21, 2016

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Darshita 6.14K October 21, 2016 0 Comments

To expand operations, Aragon Consulting issued 1,950 shares of previously unissued common stock with a par value of $2. The price for the stock was $50 per share.

Using the A=L+OE?

1 Answer

score 0 · Answer 1 · 2016-10-21T08:42:11+00:00

First of of let us understand meaning of A=L+OE

A= Assets

L= Liabelity

OE=Owner’s equity

So Assets = Liabelity +Owner’s equity (A=L+OE)

ISsued 1950 share @ $50 each co company received

=1950 *50

=$ 97500

Company recived cash of 97500 which shows that increase in ASSETS

on the another hand Shareholder also increasing by worth $ 97500 which shows that increase in OWNERS EQUITY

So A=L+OE

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