Answers
Common stock issued = $206,000
Payment of Accounts payable = $66,000
Salaries expense paid = $103,500
Due to common stock issued, stockholder equity will increase and due to Salaries expense paid , stockholders equity will decrease.
Net effect on stockholders equity = Common stock issued - Salaries expense paid
= 206,500-103,500
= $102,500
stockholders’ equity will increase by $102,500
First option is correct.
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