In the Operating Agreement for a newly formed company it speaks of the initial capital contribution of the founding partners. That investment was made in a combination of cash and sweat equity. The Agreement later includes a provision providing for a 'Set Price' meant to monetize that initial capital investment.
My question relates to how this set price ought to be "memorialized and made a part of the LLC records" as required. I'm guessing that I want to create a GL entry. I understand how to balance the 'Common Shares' account with the 'Checking Account' as a GL entry. But I'm wondering how it is I make a balanced GL entry giving credit in Common Shares for the unpaid sweat equity invested in the start-up. Any accountants in the house who'd be willing to share with me how they would proceed? Your help would be appreciated. -- Hugh Esco http://www.CampaignFoundations.com/ Providing Application Hosting, Telephony and IT Development Services if( $insurance->rationing() ) { $people->die(); } ------------------------------------------------------------------------------ Download Intel® Parallel Studio Eval Try the new software tools for yourself. Speed compiling, find bugs proactively, and fine-tune applications for parallel performance. See why Intel Parallel Studio got high marks during beta. http://p.sf.net/sfu/intel-sw-dev _______________________________________________ Ledger-smb-users mailing list [email protected] https://lists.sourceforge.net/lists/listinfo/ledger-smb-users
