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    miumiutira Posts: 11, Reputation: 1
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    Jun 3, 2012, 04:26 AM
    Accounting - common share and capital
    What is the double entry for below question?

    (L & H Developments was authorized to issue 1000 class A common share. Two hundred common shares were issued upon incorporation. Chris and Jane each contributed $250000 to the formation of the corporation. Each received $100 in common shares; the remainder of their contribution was treated as a shareholder loan.)

    My entry is : Dr cash $100 cr common share for chris $100
    Dr cash $100 cr common share for jane $100
    Dr cash $499800 cr long term loan payable - chris $249900
    Cr long term loan payable - jane $ 249900

    ( May I know my entry whether correct? If I am wrong please give me comment.)

    Thanks and regards,
    Miu

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