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sopranoi
Level 2

How do I set up a fixed asset and shareholder loan (S-Corp) when the loan amount is less than purchase price?

We are an S-corp. My husband and I are the only shareholders. We loaned our company personal money for a fixed asset (truck), but not for the whole amount. (Yes, I am aware of the pros/cons of this and am applying interest to our loan).  

Details:
1. Fixed Asset (Construction Equipment:Truck) purchase price: $20,000.
2. Two deposits of personal funds into company checking: $10,000 and $8,000.
3. Two withdrawals for cashier's checks from company checking: $10,000 and $10,000.  

What I have done (mostly incorrectly I'm sure):  
1. Created the Fixed Asset under Construction Equipment:Construction Equip-Truck. 
2. Created a Long-Term Liability Account
a. Name: "Loan for Truck" 
b. Detail: Shareholder Note Payable 
c. Amount: $18,000
3. Created a Journal Entry to "Set up Truck Loan" as follows: 
a. Construction Equipment:Truck 
b. DEBIT $18,000, Loan for Truck 
b. CREDIT $18,000, Used account SHAREHOLDER DISTRIBUTION 1 for the two deposits
5. Used account CONSTRUCTION EQUIPMENT (Fixed Asset) for the two withdrawals. (When I used the subaccount for Truck it doubled the balance).
6. When making payments to our personal account for the truck loan, I directly transfer money from company to personal online and apply to the account: Loan for Truck. I do journal entries for the interest expense.

Need Help:
1. Set up the Fixed Asset for the full purchase amount of $20,000 (not just $18,000).
2. Set up the Long-Term Liability (Shareholder Loan) for $18,000 and categorize the $2,000 contributed from our company correctly.
3. Categorize the deposits made from personal correctly.
4. Categorize the withdrawals made for truck purchase payments correctly.
5. Categorize the payments made to personal account each month correctly.

I know this is extremely confusing, which is why I'm asking for help.  
In summary, we personally loaned our company $18,000, our company purchased a truck for $20,000 (contributing the $2,000) and I don't know how to set up or categorize any of this or do journal entries the way I should.
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