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Holly
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Joined: 10 Jan 2008
Location: United States
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Posts: 245

Posted: 25 Mar 2009 at 06:57 \| IP Logged

Received $10,000 from venture capitalist as investment - no strings attached.

Debit cash 10,000 and credit what?

divyagovil1
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Joined: 30 Jan 2009
Location: India
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Posted: 25 Mar 2009 at 09:54 \| IP Logged

Hi Holly, what chapter is this related to ? Venture capital ....

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wannabe
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Posted: 25 Mar 2009 at 12:41 \| IP Logged

my guess is that the VC is investing in your company. IT means they get common stock most likely. i would

cash 10,000

c/s 10,000 (and do appropriate calculations for par and APIC)

APIC (what ever left after par)

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Holly
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Posted: 25 Mar 2009 at 14:07 \| IP Logged

Thanks. I've been reading about governmental and I ran across this even though it wasn't related to governmental.

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