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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 12691
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Distribution account why would you post loans that the owner

Customer Question

Customer: distribution account why would you post loans that the owner used his home equity for to the distribution account when the company paid the equity line off
JA: Thanks. Can you give me any more details about your issue?
Customer: i am assisting someone with what what the accountant said to put in a distribution account but there are many enties like a loan payoff, rent ect why would they be put there in that account
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Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.



I can help here.


Can you give me a little background? (entity type, S-Corp, LLC, C-Corp)


And a little more about what the transaction is here? (For example, was the loan FROM an owner To the business?)




I'll be here

Expert:  Lane replied 1 year ago.

Essentially, if the entity, the company, was the borrower, the account entry would be a debit to Loan Payable, and a credit to Cash.