Chapter 6. Startup Financing and Staffing
Welcome to our little business—AppleSeed Enterprises, Inc. Imagine that you are AppleSeed’s entrepreneurial CEO. You also double as treasurer and chief financial officer.
You have just incorporated (in Delaware) and invested $50,000 of your own money into the company—well, actually it’s your Great Aunt Lillian’s money. You’re going to need much more capital to get into production, but these initial transactions will start up the business. Follow along…we have a lot to do.
Transaction 1. Sell 150,000 shares of AppleSeed’s common stock ($1 par value) for $10 per share.
Transaction 2. Pay yourself your first ...