Commision paid to third party for attracting investment in company's stock?

[Arthur Vandelay]

If a company issues common stock to party A for cash then, at a later date, makes a cash payment to party B as a commission for attracting this investment, how would this payment properly be treated? (Credit cash, of course, but where does the offsetting entry go?)

 

[kirby]

The cost of the commission is a stock issuance cost.
Record as a REDUCTION of the proceeds of the stock issued.

 

[Arthur Vandelay]

The cost of the commission is a stock issuance cost.
Record as a REDUCTION of the proceeds of the stock issued.

Thanks! That was my understanding, but I wanted to make sure I had this correct. As thing stand, I have the transaction recorded as follows:

On issuance of the stock:
Dr. Paid-up Capital
Cr. Commission Payable

On payment of the commission (occurring in the subsequent financial year):
Cr. Cash.
Dr. Commission Payable