Bookkeeping for Corporations Assistance Needed

An example of a  journal entry that books the initial capital made in a corporation.

          DEBIT                       CREDIT

BanK                                                                      100.00

      Capital Stock                                                                      100.00

The purpose of this entry is to recognize the amount of cash used to purchase the capital stock

Thank you for responding!  This entry would be in addition to my original entry of the notes payable and franchise rights-correct?

You may want to have a chat with their tax accountant, and if they don't have one, they should probably get one. 

The shareholders need to decide how many shares are being issued and how much they are putting in for them.  If they didn't actually put in cash, then the offset would be a receivable from shareholders. 

Instead of owner equity, you need to have an equity account for each shareholder (if there aren't so many of them that you can track them specifically and individually in the Equity section).

There aren't draws. Shareholders who work for the business first take payments as payroll and then distributions, which are taken not as frequently and not in lieu of payroll. If there is money out as a loan to a shareholder, to be repaid, there are special rules for this. There are restrictions on reimbursements to shareholders. There are taxability issues for payouts made on behalf of shareholders, such as when the employee-shareholder is part of employer-paid group medical insurance.

You need more than a chat with their accountant. You need a complete review of what is unique and specific for S-corp accounting and operation.