Hi,

I just formed my sole proprietorship business in to an LLC that elected S corp tax status. I have a few questions regarding the initial general ledger entries:

1. What equity accounts do I need to have? I have read some places that say Capital Stock, Retained Earnings, and Distributions.

2. Could you provide an example of the initial journal entry, assuming I paid $1000 in cash and $500 in equipment to the Scorp in exchange for my shares?

3. Using the above figures, my initial basis would be $1500, correct?

4. Do i need to set stock price, issue an actual stock certificate, etc.?

Thanks!