USA Reconciliation for Paid-in or Capital Surplus?


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Hi guys, I am new here so please do not laugh at my ignorance. Here is my question:

I need to attach a reconciliation for the paid-in or capital surplus. I am the owner of a small business. The paid-in or capital surplus basically consists of business expenses paid out of my personal pocket, and considered contribution to the business, and the cash deposit I made to the business acccount to serve as cushion. What is the "reconciliation"? Is it the same as a statement? For example, accumulatively, I paid $60 business expenses (utilities) out of my own pocket; then on a different day I deposited $900 to the business account to serve as a cushion. I consider the total $960 as paid-in or capital surplus.

So, is the "reconciliation" basically a statement table that lists the $60 item, and the $900 item, and then indicate the total as $960? If so, do I need to breakdown the $60 detailing what the expenses are, and indicate the $900 as a cash deposit? Or do I just simply list the two items.

Please enlighten me what this "reconciliation" is about and its proper/common format for this purpose (paid-in or capital surplus in my situation). Many thanks! Again, please bear with my ignorance.
 
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kirby

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Hi
In this case, you need to provide the detail of what makes up the $960. So create a schedule ( a listing) that has the title " Detail of Paid in Capital" and the "as of " date
then show these column headings : Amount , Date posted to GL, Description
and then show the detail of the two items that you described above and no need to detail that $60 as it is a minor amount
Then show a total of the amount and you are there!
 
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Samir

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Basically, you paid in $960 of additional capital. Of which, $60 was used for a utility bill that should be expensed on the company books. The remaining $900 is an increase in your company's equity, ie your increase in capital.
 

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