How do you record an investment when both preferred and common stock are issued?
Lets assume there is no par value, each share is worth $1.00, and a total of $1,000,000 is invested into a two person partnership for 75% of the company.
I am curious how this affects current balance sheet accounts for equity. Specifically, what is done with the two founders capital accounts? (Contributions, Distributions, etc.)
Any help and or guidance would be much appreciated.
Tank
Lets assume there is no par value, each share is worth $1.00, and a total of $1,000,000 is invested into a two person partnership for 75% of the company.
I am curious how this affects current balance sheet accounts for equity. Specifically, what is done with the two founders capital accounts? (Contributions, Distributions, etc.)
Any help and or guidance would be much appreciated.
Tank