Discussion:SP Bank Loan now assumed by S-Corp - S/H Loan?

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Revision as of 18:35, 29 July 2009

Discussion Forum Index --> Accounting Questions --> SP Bank Loan now assumed by S-Corp - S/H Loan?

Dude7707 (talk|edits) said:

29 July 2009
SP initially took out $10k signed by him. Now SP is changing to S-corp and want's 10k to be assumed by S-corp since a promissory note will be issued. What is correct recording on S-Corp Books? 
 Dr.  S/H - Contributions

   Cr.  Loan from S/H

Future payments from S-Corp paying down bank loans will be recorded as: 

 Dr  Loan from S/H
 Dr  Interest Expense
   Cr  Cash

Is this correct.....

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