I just incorporated my business and spent my own cash to pay the lawyer to get things set up (Corporate registration etc)
How do I enter that money into the transactions to show as an owner investment?
You would create a journal entry to debit Professional Fees and credit loan from shareholder. For example let's say you paid 800 for the attorney. You would debit the professional fees 800 and credit loan from shareholder for the same amount. Go to Accounting/Transactions/More create journal transaction. Alternatively you could contribute that in exchange for stock. You would look at the par value of the stock and record in the minutes how many shares are being issued. Same 800 from above. So, if 1000 shares are being issued with a par value of .01 per share. Your entry would look like this:
Debit Professional Fees 800
Credit Common Stock 10
Credit Additional paid in capital 790
Wow, Perfect answer! Thank you for adding the shareholder part, that was going to be the next ask - How to record my purchase of shares! Thanks!!
Hi Eric14, how would I record my initial purchase of common share when I just deposited the $1 to my business account from personal funds?
See the example above. If the par value of the common share is 1 cent. Then, your entry would be
debit cash $1
credit common shares .01
credit paid in capital .99
or if you are working from the transaction journal, then split the deposit as above.