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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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should shares issued in a private company be listed in the

This answer was rated:

should shares issued in a private company be listed in the balance sheet as assets?

Megan C :

Thanks for your question, and thanks for using JustAnswer.com

Megan C :

Are these shares that you own of another company, or are they the shares of the private company?

Customer:

They are shares issued to 4 shareholders at the time of setup of the Company.

Megan C :

They are shares of the company?

Megan C :

These are listed on the balance sheet as Equity

Customer:

3 of the shareholders each have 49 (@ $1.00), 1 has 153 (@ $1.00 = 51%). All shareholders loaned cash to the company at startup. This is to include the value of shares purchased. I want to show the value of shares issued ($300.00) as Settled Sum only in Equity. The major shareholder is demanding that the $300.00 also be shown in the Asset section of the BSht, listed by sharholder.

Megan C :

No, this would not go on the asset side. That would be incorrect. It has to be equity

Customer:

Equity only?

Megan C :

Equity only. The only stock that goes in your balance sheet as an asset are shares of stocks that you own of OTHER companies, but never your own

Customer:

That's exactly what I have been saying - we are dealing with Hitler's grandson. When I posted the loan monies to Liabilities, I reduced the liabilities by the $300 which I posted to Equity as Settled Sum. The total of the loan monies debited bank.

Megan C :

You did correct. This should not be an asset.

Customer:

Thank you. Can I obtain a transcript of this conversation by email?

Megan C :

Yes, once you rate, it should be sent to your email

Megan C and 2 other Finance Specialists are ready to help you
Thanks, Rod for your positive rating. Please come back and visit me any time you need a question answered. It was a pleasure working with you today. Thanks for the generous bonus as well!
Customer: replied 2 years ago.

Thanks - all received.


Regards,


Rod B