How to categorize/handle a non-business expense made by mistake
HOSPM
Member Posts: 14
Hi,
How should the following two transactions in an S Corp's Wave account be categorized and/or handled?
Transaction #1: A $50 personal expense is mistakingly made with the business debit card
Transaction #2: In an effort to correct transaction #1, a $50 deposit is made to the business checking account from the owner's personal bank account
Tagged:
0
Comments
HOSPM,
I would classify both transactions under shareholder loan. They should net to zero.
Mike G, CPA
www.mgfinancial.net
@Mikeg What account category would "shareholder loan" fall under on Wave's Chart of Accounts page?
Under liabilities. By default Wave has a loans from owner. If not, you could set one up on the Chart of Accounts under liabilities.
Mike G, CPA
www.mgfinancial.net
Thanks @Mikeg
Your welcome. Keep me in mind if you're looking for someone to file the S-Corp. Have a great evening.