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Simplify payday and set payroll to run automatically on QuickBooks. Explore QuickBooks Payroll

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Replying to:
Rainflurry
Level 15

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@sopranoi 

 

There are no journal entries needed.

 

First, record the personal deposits into the bank account.  Create two separate deposits ($10K and $8K) and assign Shareholder Loan Payable to both deposits.   You now have the cash in the business bank account and the $18K loan payable liability.  

 

Then, to record the purchase of the truck, create two Expense transactions for $10K/each.  Assign the proper bank account and truck's fixed asset account as the category to each transaction.  This records the $20K reduction in cash and puts the $20K fixed asset on the books. 

 

When you make payments on the loan, create a check and assign the principal portion to the Shareholder Loan Payable liability account and the interest portion to interest expense.  You're all set.    

 

 

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