Working on an s-corp balance sheet and I'm not sure if I'm entering Capital Stock and Additional Paid-In Capital correctly. This is for a 2nd year in business. Let's say the beginning of year balances are (not sure if it matters there was a loss but I'll put it in just in case)...
capital stock $20,000
additional paid-in capital $0
retained earnings (loss) -$10,000
And this year the two shareholders each put in an additional $5,000 in contributions to equity, not changing their 50/50 split. Should the end of year balance look like THIS (capital stock always staying the same as the first year stock purchased)...
capital stock $20,000
additional paid-in capital $10,000
Or does the capital stock number get increased to $30,000 and I leave add'l paid-in stock at $0? Or something else entirely?
