asked

What are the proper accounting and tax practices for a shareholder loan (loan from the shareholder to the corporation) in the context of paying both payroll obligations and various expenses when the company did not have assets to cover them? How should these transactions be tracked in bookkeeping accounting entries, and how do they affect the corporation's current asset, expense, and liability balances? Additionally, how should these values be reflected in the 1120 end of year filing, particularly regarding the inclusion of amounts paid by the shareholder for payroll in the salaries and wages (line 13) of form 1120?

November 27th, 2024

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