What entry I should do for owner's investment?

I am starting an S Corporation and I have following accounts:


Common Stock
Paid-in Capital
Retained Earnings
Dividends Paid


My question is what entry I should do for the owner's investment in the company?

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That depends.

Give me some more details. Have you issued stock? What did you pay for it? Did you put in personal money to start a checking account?








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Nov 01, 2016
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Thank you
by: Anonymous

Thank You so much.

Nov 01, 2016
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Your Answer
by: Anonymous

No.

The Common Stock account is strictly to show the value of any stock issued for your company.

The Retained Earnings account is an accumulation of profits and losses for your company.

If you don't want to use an Owner's Equity account, you could use a Note Payable-Owner account. That's not what I would suggest, however.

Kathy

Oct 31, 2016
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Common Stock A/C
by: Anonymous

Can I use Common Stock A/C ?

Oct 31, 2016
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Your Answer
by: Anonymous

Okay.

Debit: Cash in Checking...$XXX

Credit: Owners Equity...............$XXX


That's it!

An S-Corp is a unique type of business, because it's a type of Corporation, so you have stock, but the profits flow thru to the owner's personal tax return like a Sole Proprietor. So you can use an Owner's Equity account.

Hope that helps!

Oct 30, 2016
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What entry I should do for owner's investment
by: Sultan Rana

Thank you for your reply. Not issued any stock but deposited cash in a bank account as an investment to start a business.

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