John contributed $6,000 to the business by opening a bank account in the name of the business,United Internists.The corporation issued common stock to John.This transaction results in an increase in the assets of the business.

Question

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By opening a bank account in the name of the business and contributing $6,000, John has increased the assets of the business, as cash is now available to be used for business operations. The issuance of common stock to John is a way for the corporation to acknowledge his contribution and provide him with ownership in the company.

John Contributed $6,000 to the Business by Opening a Bank