Hello, for a startup multi-member LLC using cash accounting, the initial capital contribution by each member (owner) was both in the form of a cash deposit, and also a non-cash capital contribution consisting of a combination of non-inventory supplies and equipment, where each piece of equipment's fair market value was $250 or less.
For the cash contribution component, the bank deposit transaction was assigned to the member's contribution equity account.
How would the non-cash capital contribution value be recorded? These non-cash capital contributions are not considered a loan, have equipment of small enough value (< $250) that I don't there is any sort of fixed asset consideration, and the supplies are consumables which we aren't interested in tracking in inventory.
In this case, for each member, would a journal entry be made for the total fair market value of the non-cash contribution and assigned to their respective member's contribution equity account?
