(Solution) - A company has only 4 shareholders each contributed 10 000 and -(2025 Original AI-Free Solution)

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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 balance sheet or does it? Originally, the investment was +40,000 to Cash and +40,000 to Contributed Capital.