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How to categorize/handle a non-business expense made by mistake

HOSPMHOSPM 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

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    MikegMikeg Member Posts: 995 ✭✭✭

    HOSPM,
    I would classify both transactions under shareholder loan. They should net to zero.
    Mike G, CPA
    www.mgfinancial.net

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    HOSPMHOSPM Member Posts: 14

    @Mikeg What account category would "shareholder loan" fall under on Wave's Chart of Accounts page?

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    MikegMikeg Member Posts: 995 ✭✭✭

    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

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    HOSPMHOSPM Member Posts: 14

    Thanks @Mikeg

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    MikegMikeg Member Posts: 995 ✭✭✭

    Your welcome. Keep me in mind if you're looking for someone to file the S-Corp. Have a great evening.

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