Corporation shares and par value

[ChEAr$]

ChEAr$...this thread has been pushed to the 2nd page so maybe you did not see my reply. I am very curious to know your insight regarding this situation.

The Articles of Incorporation, which you probably now have a copy of in your file, will also
show par value of each share, or "no par" if your state permits it.
But remember, par value is an arbitrary value of initial stock and won't tell you anything
meaningful probably.

[NotEasy]

The Articles of Incorporation, which you probably now have a copy of in your file, will also
show par value of each share, or "no par" if your state permits it.
But remember, par value is an arbitrary value of initial stock and won't tell you anything
meaningful probably.

I think I need to know that in order to derive the capital stock and then the paid in capital on the balance sheet. Or perhaps I am not going the right direction?

[ChEAr$]

I'm curious now as to what are you doing or need to be doing with this corporation. You say
it was formed 5 years ago. Do you not have previous years' tax returns? And do you have
a copy of the Articles of Incorporation yet? In what state is the corporation? Is this a
new client? (I assume so, otherwise you would have been doing the 1120S for last four years.)

[NotEasy]

I'm curious now as to what are you doing or need to be doing with this corporation. You say
it was formed 5 years ago. Do you not have previous years' tax returns? And do you have
a copy of the Articles of Incorporation yet? In what state is the corporation? Is this a
new client? (I assume so, otherwise you would have been doing the 1120S for last four years.)

It's a new client. And he did give me a copy of his last year 1120-S (which is the first year tax return because the Scorp was inactive in the first few years). But I am sure the ending capital stock on the balance sheet is wrong. The capital stock is over $100,000 (and no paid-in-capital) which is much more than the total of what the shareholder has ever contributed to the S-corp, even if we assume all his contribution is capital stock. So I am now trying to figure out the capital stock and the paid in capital from the scratch.

I know the total of his contribution to the S-corp. So I am thinking if I can find out the par value and number of stocks issued, I will put that as capital stock. And then I will put the balance of his contribution as paid-in-capital.

[NotEasy]

Do you not have previous years' tax returns? (only 2008 which is their 1st year tax return. The Scorp was inactive before 2008)

And do you have a copy of the Articles of Incorporation yet? (Not Yet. But I will have no problem to get it. Based on what he said, the Articles just say 2000 shares would be issued without mentioning the par value)

In what state is the corporation? (California)

Is this a new client? (Yes)