An equity investment is money invested in a company through the purchase of its shares. When people speak about equity investment, they generally refer to the buying of shares in the stock of a company traded on a stock exchange. In general there are three types of equity investments: Owner’s Contribution, Common Stock and Preferred Stock.
This types of investment money or interest doesn’t have to pay back to the investors, meaning There is no debt involved and no obligation to pay anything back.
Here are the steps to enter equity investment amounts:
Click the ‘Add Funding’ button
Type: Select Equity funding type(Owner’s Contribution, Common Stock, Preferred Stock) from funding options :
Funding Amount: Enter funding amount, To entering an amount you can select options from one time investment, Periodic investment(Recurring) or varying amounts over time.
Review funding amounts in various financial statements:
Equity funding(Loans) are not a part of profit & loss statements, But it reflects the entries in Balance Sheet and Cash-flow Statement as follow:
Where does the Equity Funding appear in Balance Sheet?
In the Balance Sheet, it appears under the equity section, and the value carries forward from the date you receive the investment.
Where does the Equity Funding appear in Cash-flow Statement?
In the Cash Flow, it appears under the section ‘Net Cash from Financing’, On cash-flow it appear as a change in available cash through investment received.