I started a new company a couple of months ago, we have an investor, the investment has been coded to an equity account within quickbooks.
When we spend some of the money he invested on company expenses that he specifically is covering using his investment, those expenses show up as a loss on our P&L. Is this correct?
If the year ended now it would show us at a loss on the P&L, which then runs through to our K-1's. That seems wrong. Maybe its not, but just seems that it's an investment which was used for its intended purpose. Is it s a loss?
The investment will eventually be paid back once we start selling in a few months.
I just feel like I dont have it set up correctly.
