When the corporation was formed on september 1 2014 common shares were sold to uncle bob for 9200 cash how do these affect the accounting equation and what specifically?

When the corporation was formed on september 1 2014 common shares were sold to uncle bob for 9200 cash how do these affect the accounting equation and what specifically?
This will increase the cash with 9200 in assets side while also increase the share capital with 9200 on liability side. Was this answer useful?YesSomewhatNoThanks for the feedback! Edit Answer byBill CPAVery knowledgeable in accounting and have been a CPA since 1985. I think you mean accounting equity?


The $9,200 would be split in equity between "capital stock" (the par value of the stock) and in "additional paid in capital" (the amount the stock was purchased for less the par value).