Let me help you record this transaction, @leebrendalee.
If this loan is part of your business, then you can record this as an Expense. But if not, you can have this as an Owner’s withdrawal.
To record a loan payment, you must create a liability account. This liability account will record the loan and its payments.
You can set up a liability account from the Chart of Accounts to record the loan.
From here, you can put your loan money directly into your bank account by creating a journal entry. Finally, to record the loan payment, simply create a cheque from the + New button.
See the following article for more information about this: Set up a loan in QuickBooks Online.
To pay an owner’s draw, you’ll just have to create an Equity account from the Chart of Accounts. Then, write a cheque from the bank account where your money will be withdrawn.
To create an Equity account:
- Go to the Gear icon and choose Chart of Accounts.
- Click New and from the Account Type drop-down, choose Equity.
- From the Detail Type drop-down, choose Owner’s EquityEnter an opening balance.
- Select Save and Close.
To write a cheque from an Owner's equity account:
- Go to the + New button and select Cheque.
- Choose the bank account where your money will be withdrawn.
- Add all the necessary information.
- In the Account field, be sure to select the Owner's equity you created.
- Select Save and Close.
Check these articles for more information:
I'm always here if you need more help. Have a great rest of the day!
