What is the accounting journal entry to record the shareholder deposited 50,000. dollars into his corporation?

What is the accounting journal entry to record the shareholder deposited 50,000. dollars into his corporation?

Postby daibhid » Wed Jan 26, 2011 2:37 am

Shareholder put 50,000.00 into his corporations bank account to get the company going. This was not a loan to the corporation.
Thank you
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What is the accounting journal entry to record the shareholder deposited 50,000. dollars into his corporation?

Postby kaelin » Wed Jan 26, 2011 2:39 am

Debit 'Cash (or the bank account)' $50,000
Credit 'Capital - Owner A' $50,000 [an equity account]
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What is the accounting journal entry to record the shareholder deposited 50,000. dollars into his corporation?

Postby matias » Wed Jan 26, 2011 2:42 am

Even with a small, closely held corporation, and one shareholder owns all the stock, there would be no individual Owner's Capital accounts. Instead, there would be a Common and/or Preferred Stock account. If this is not a loan, the corporation would have to issue shares. The entry would be:
Dr Cash 50,000
Cr Common Stock 50,000
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