PDA

View Full Version : Investment In S Corporation


foreverking
Nov 3, 2016, 10:00 AM
I am starting an S Corporation. My question is what entry I should do for my cash investment I see four accounts in my chart of accounts.
Retained Earnings A/C (Equity Retained Earnings)
Paid-in Capital A/C (Equity does not close)
Common Stock A/C (Equity does not close)
Dividends Paid A/C (Equity gets closed)


I have to debit cash A/C and which A/C I should Credit?

paraclete
Nov 7, 2016, 10:36 PM
As you have contributed capital the obvious answer is paid in capital. As you know little about accounting I suggest you get a professional to keep your books