USA Accounting For Selling a Minority Stake

[rob abbington]

Hello All

I am looking to sell a 20% stake in my company

Assuming all goes well - what are the journal entries that would be made to the equity side

Tx very much

ra

 

[kirby]

If your stock is NO PAR, then
DR CASH
CR COMMON STOCK

If your stock has a par value (say $5) and you sell 20 shares for $1,000 then you have to record $5 times 20 = $100 into Common Stock and the rest $900 into an acct called "Paid in Capital"