Question

Short term loan from shareholder journal entry

How do I create the journal entry to set up the short term working capitol loan from an LLC member?

In the chart of accounts, create a new liability account and name it due to [name]

enter a deposit for the amount and use that due to [name] account as the source account for the deposit

when you pay back the loan, use that due to [name] account as the expense (reason) for the payment

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