SaaS
Convertible Note Issuance
Recording cash received from an angel investor via a convertible note with a discount and cap.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash in Bank | Asset (+) | 200,000.00 | - |
| Convertible Notes Payable | Liability (+) | - | 200,000.00 |
💡 Accountant's Note
Convertible notes are debt until they convert. They are recorded as a liability at inception. At a future priced round, the note principal (plus any discount / cap benefit) converts to equity.
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