Solved
Purchased land
Company borrowed money from owner to purchase land. Whst entries do you need
1) deposit from owner
2) entries for loan to pay back owner
3) entry for check to seller of land
unsure how to do all of this
There are two entries needed:
1) The entry for the funds received from the owner are both the deposit and the loan. Create an Other Current/Long Term Liabilities account called 'Loan Payable - Owner'. Then, record a bank deposit and assign the newly-created Loan Payable - Owner account to the deposit. You now have the deposit and the loan payable on your balance sheet.
2) Record the purchase of the land by creating a Check or Expense Transaction. Create a fixed asset account called "Land - XYZ" and assign that account to the Check or Expense Transaction. You now have the reduction in cash and the land asset on your balance sheet. That's it.
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