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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I own a small construction company that is an S-Corp. In 2008,

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I own a small construction company that is an S-Corp. In 2008, I received a loan for the business and the loan proceeds were deposited in the business account. However, a Note Payable was never entered in the books. Instead it was entered as revenue.

I want to enter the Note Payable for the remaining balance as of 2011 since the books (QuickBooks) are closed for previous years.

How can I enter this if I cannot debit Cash, since there was no actual cash received in 2011? Is it possible.
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

Yes, it's possible to make this entry. You will be correcting your prior period, so you will debit retained earnings and credit notes payable. If you make the entry in 2011 then you would debit revenue and credit notes payable.

Thanks again for using and have a great day

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