Cash basis accounting. Say the LLC has a CC used for expenses. Say the CC had $10k in expenses, and I overpay it with $10,500 from personal funds. The LLC reimbures me for $10,500.
*DR Prepaid Credit Card $500
*DR Credit Card $10,000
*CR Owner Contribution $10,500
I seek reimbursment for $10500 from the LLC.
*DR Owner Distribution $10,500
*CR Cash $10,500
Question:
1) The $10,500 went towards expenses the LLC incured, but I am confused on how this will reflect on my income statment as it simply appears I pay for the expenses and am reimbursed. Is the full $10,500 owners distribtuion an expense on the income statment lowering my net income?
2) For simplicity, say the LLC only has $200k revenue and $100k in CC expenses. I pay off $100k on the CC using personal funds. The LLC reimburses me. My taxable income wont be $200k, it will still be $100k, right?
