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    APMCOY's Avatar
    APMCOY Posts: 7, Reputation: 1
    New Member

    Mar 6, 2008, 07:33 PM
    Sell of stock in C Corp
    The corporation (a c corp) has 100 shares of common stock no par value. All the current shares are owned 50/50 by myself and my partner.

    Another coporation wants to purchase 50% ownership in the corporation at a price already agreed upon.

    I assume then that they are purchasing outstanding common stock then. Does the 100 shares remain the same and they are purchasing 50 shares then?

    Is these funds then paid to the corporation or to me and my partner directly?

    If to corporation, how are the funds to purchase the shares recorded in the corporate books. Can you tell me what the journal entry would be? Debit Cash and Credit ?

    Subsequently, how do I get my money out of the corp then?

    Sorry but I know this multiple questions, but if anyone can follow what I am trying to state and able to give me any info, I would be grateful
    MaggieMouse's Avatar
    MaggieMouse Posts: 226, Reputation: 8
    Full Member

    Mar 12, 2008, 07:12 PM
    Number of stock: it's up to you. 1. you can sell 50 shares, then remains the same, 100. Or 2. issue another 100 shares to make it total 200.

    Funds: 1. to you and your partner. 2. corporation.

    Entry: Dr. Cash, Cr. Shareholder's Capital Account (equity account)

    Money to you: if it's case #1 described above, you get the money directly, Dr. your capital, Cr. New guy's capital. If it's case #2, you don't get the money, it stays with the corporation.

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