I have an S Corp client that just purchased a business including land, building, equipment, and more. They used multiple funding sources including a bank loan, owner financing, a contract with a vendor to solely use their products for 5 years with no repayment, a personal loan in which the owners contributed it to the company for the business, LOC, and existing cash. I am working through the QBO entries. I have the business purchased set up as a fixed asset, the assets under the business (land, building, equipment) as sub accounts. Then the bank loan and owner financed loan setup as LT liabilities/notes payables. I believe the personal loan that the owners took out and contributed to the company is a loan from shareholder entry. But, I'm not sure what to do with the contract the client/vendor signed but does not require repayment to give my client's the money for the business purchase. The only stipulation is they exclusively use the vendor's products for 5 yrs.
Any advice or assistance would be appreciated. I'm also worried I'm missing something...
