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I can help you with your S Corp question. I need to understand what your question is though exactly .
Can you please confirm that your question is: Can my S-corp sell equipment it owns and instead of the S-corp receiving the cash the shareholders receive the cash and reduce their respective loan balances by the amount of cash received?
If you can please confirm that this is your question I will get back to you right away.
Yes you can do this but it would be best to have the cash deposited to the S corp bank account and then make the loan principal payment back to the shareholders.
Basically you would just record the asset disposal as you would regularly but instead if debiting the cash account for the cash proceeds received you would debit the "loan from Shareholder" account.
The entry for the asset sale would be as follows:
Debit Loan from Shareholder $500
Credit equipment $400
Credit Gain on Sale of equipment $100