Common Stock

The common stock account reflects the assets that investors have contributed to the business.

If a person wrote a check for $40,000 to start a corporation, the corporation would record $40,000 in its bank account and $40,000 as common stock. The $40,000 represents the ownership interest the investors have in the company as a result of their initial investment.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/common-stock/