@SavvyAcccountant I am thinking to handle the transactions as below.. could you please let me know if it is right?
Transaction in Business checking bank acct.:
Transfer from PAL to Business Chec. Acct. $8,000.00
"*Option 1: Add to account ""Loan from shareholders""-long term liabilities
*Option 2: Record TRANFERS, with transfer account ""PAL Account"""
"Transfer from Business Chec. Acct to Escrow Acct.
for downpayment on business purchase" $8,000.00
*Add to account "Business Purchase"-Other current assets
Transfer to PAL Acct to cover monthly Interest for loan $80.00
*Add to account "Interest payable account"-Expense
Transfer to PAL Acct to cover principal payment for loan $500.00
*Add to account "Loan from shareholders"-long term liabilities
Payment to reduce the loan or long term Liab. (principal)
I have added the "Pledged Asset Line" PAL bank account in QB. I am not sure, if there is any benefits at all. Note it is the from the personal bank account where the owners got the loan. Currently it only has one transaction, 8k USD, as "received". There is not any transaction as "spent" when the money was transfer from that account to the business checking bank account. Do it means sense to keep the Pledged account in QB?
Thanks a lot for your ongoing support.