Costs of Organizing a Corporation

[cpmiller]

I have none qualifying costs (issuing and selling stock i.e.
commissions, professional fees, etc.). What are the best GL accounts
for me to establish to record these transactions? I believe they are
should either by considered other assets, or possibly I should just
have a contra equity account.

Any help is appreciated.

[San Diego CPA]

Post by cpmiller
I have none qualifying costs (issuing and selling stock i.e.
commissions, professional fees, etc.). What are the best GL accounts
for me to establish to record these transactions? I believe they are
should either by considered other assets, or possibly I should just
have a contra equity account.
Any help is appreciated.

Other Assets is fine. Organizational expenses are generally amortized over
a period of 60 months.

[f***@gmail.com]

Post by San Diego CPA

Post by cpmiller
commissions, professional fees, etc.). What are the best GL accounts
for me to establish to record these transactions? I believe they are
should either by considered other assets, or possibly I should just
have a contra equity account.
Any help is appreciated.

Other Assets is fine. Organizational expenses are generally amortized over
a period of 60 months.

Why not just create an expense account called Stock Sale Expenses with
two sub accounts under it called Commissions and Professional Fees,
and any other expenses that you might incur since you included an
etc. Seems the simliest way out and easy to understand. These
accounts would be debited upon the sale of a stock (as would the
appropriate bank account or Accounts Receivable) and appropriate
income account would be credited. ***@yahoo.com. Jerry
Rhodes