I am completely befuddled as how to record this startup GL transaction. Any help would be most appreciated. Thank you so much.
I have an SBA loan for buying a business which required a 15% downpayment. The downpayment came from my personal funds. I'd like to recoup it from the business. How is this recorded? Is it a N/P to me from Co. & debit to SBA loan of $150,000 bringing balance of SBA loan to $135,000?
My big issue is recording the closing transactions:
The seller issued a N/P to help with closing costs and for Goodwill for the purchase. The purchase price was $175,000. The Goodwill according to purchase agreement was $25,000, Fixed Assets were $150,000. No money came from me for the closing. My understanding is all the closing costs came out of the N/P from the seller.
How do I record this? This is all that's on the closing statement.
Db
Fixed Assets $150,000
Goodwill $25,000
Inventory & adj $5,222
Due seller at closing $180,222
Closing costs were $10,235
(lawyers, taxes) Expenses
Check to me at closing $10,070
Asset
Cr
SBA Net loan proceeds $135,000
N/P from Seller $50,000
$185,000
