SaaS
Convertible Note Conversion to Equity
Converting the outstanding note balance to preferred shares at the Series A round.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Convertible Notes Payable | Liability (-) | 210,000.00 | - |
| Preferred Stock (Par Value) | Equity (+) | - | 2,100.00 |
| APIC — Preferred Stock (Conversion) | Equity (+) | - | 207,900.00 |
💡 Accountant's Note
At conversion, the note (including accrued interest and discount benefit) is reclassified from liability to equity. No cash changes hands — it is a balance sheet reclassification.
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