Event: One stockholder reported to the company that 330 shares of his East Hill stock had been sold and transferred to another stockholder for $3,700 cash.

what effects does this event have on the balance sheet of a company? How do I input this in the balance sheet (asset= liability + stockholder equity).

This event has a few effects on the balance sheet of a company. Let's break it down and explain each effect:

1. Assets:
- Cash decreases: Since the company received $3,700 in cash, you would record a decrease in the cash asset on the balance sheet.
- Stock (Investment) decreases: The company sold and transferred 330 shares of East Hill stock, so the value of the stock as an investment will also decrease. This decrease in stock value would be recorded as a contra-asset, reducing the total assets on the balance sheet.

2. Liabilities:
- There is typically no direct impact on liabilities in this scenario, as the transaction involves the transfer of shares between stockholders and does not involve borrowing or repaying any debts. Therefore, you can generally leave the liabilities section unchanged.

3. Stockholders' Equity:
- Common Stock remains unchanged: The transfer of shares between stockholders does not impact the number of authorized or outstanding shares of common stock, so the Common Stock account on the balance sheet remains unchanged.
- Additional Paid-in Capital remains unchanged: Similarly, the value of the shares being transferred does not affect the Additional Paid-in Capital account on the balance sheet, so you can leave it unchanged as well.

To input this transaction on the balance sheet (under the asset = liability + stockholder equity equality), you would make the following adjustments:

- Decrease the Cash asset by $3,700.
- Decrease the Stock (Investment) contra-asset by the value of the transferred shares.
- Ensure that the total assets continue to equal liabilities + stockholders' equity.

Remember, it's important to consult with an accountant or refer to your specific accounting guidelines to accurately reflect this event on your company's balance sheet, as accounting rules can vary.