Accounting




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General Accounting Discussions: S corporation with no stock issued; 4 partners

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    • CommentAuthorjake
    • CommentTimeMay 25th 2007
     
    S Corporation formed. 4 partners, 2 with 30% ownership (15% ea) and 2 partners with 70% ownership (35% each).
    2 partners invested $20,000 each into the corporation (the 30% owners). What is the entry to show this recording on the Balance Sheet. No stock is issued. Net profit will be shared and (net loss) based upon investment into the company. The payments of distribution of net profit will not occur until such time as the company is "profitable" and in some cases the profit will be re-invested into the company. A CD was purchased as collateral for a Line of Credit. As the Line of Credit is utilized, what will be the entry on the balance sheet?
    Thankful People: Chowbaby

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