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What effect does a debit and a credit do to common stock? Does a debit decrease common stock or does it increa

maniac0788 asked:


What effect does a debit and a credit do to common stock? Does a debit decrease common stock or does it increase common stock?

Esther
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This entry was posted on Monday, February 23rd, 2009 at 1:27 pm and is filed under common stock. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “What effect does a debit and a credit do to common stock? Does a debit decrease common stock or does it increa”

  1. MikeeyMan Says:
    February 23rd, 2009 at 7:23 pm

    A credit to common stock increases the common stock… Same as retained earnings.

    If the company sold more common stock, the transaction would be..

    Debit cash XXX
    Credit common stock XXX

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