1. Paul forms the corporation by purchasing 10,000 shares of $1 par stock.
2. Paul finds a nice retail storefront in the local mall and signs a lease for $500 a month.
3. PGS takes out a bank loan to renovate the new store location for $100,000 and agrees to pay $1,000 a month. He spends all of the money on improving and updating the store's fixtures and looks.
4. PGS purchases $50,000 worth of inventory to sell to customers on account with its vendors. He agrees to pay $1,000 a month.
5. PGS's first rent payment is due. ($500 per month)
6. PGS has a grand opening and makes it first sale. It sells a guitar for $500 that cost $100.