Question

Blake and Ryan each invest $30,000 in a business and are given shares of stock in Jones Industries as evidence of their ownership interests. For this transaction, identify the effect on the accounting equation.

Answer 1

Both asset and equity increases

Step-by-step explanation:

As we are accepting investments from Blake and Ryan in the form of cash and offering our shares in exchange. This will result in our cash(asset) will increase by the value of $60,000 and Equity is also raising by issuing shares of $60,000 value to both Blake and Ryan equally.