USA PS Valuation

Dec 6, 2019
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United States
We are a startup company and I have a sub agreement for preferred stock that was convertible to common stock at 1:1000. Same par. The agreement was for 50,000 PS at $9,800. At the time, no other PS had been issued so we used CS if converted as its FV. The PS were issued and immediately converted when the common shares had a FV of $.88. Our initial entry was to debit Sub Agreement and credit PS and APIC, and then the subsequent entry to debit PS and credit CS and APIC. How do I account for the FV of .88


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