A company has only 4 shareholders each contributed $10,000 and wereissued 8000 shares of stock. One stockholder

Question:

A company has only 4 shareholders each contributed $10,000 and were issued 8000 shares of stock.
One stockholder reported to the company that 500 shares of his stock had been sold and transferred to another stockholder for $5,000 cash. How is this recorded on the or does it? Originally, the investment was +40,000 to Cash and +40,000 to Contributed Capital.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...