Clearing a Shareholder loan amount by including it in your personal income

CBL

Any tips on the best way to do this for? I tried adding it as a bonus to my salary but could not figure out the journal entry to do this properly.

Mikeg

@CBL,
It would be important to know what type of entity is your business and confirm you are talking about a loan you owe the business.
If you are a sole proprietor, single member LLC, or partnership then you can't pay yourself a salary or bonus. The amount should be closed out to drawings. Debit Drawings and credit shareholder loan.
If you are an S-Corp, then you can declare a bonus, however, if you are not running a payroll this could present a problem in that payroll taxes are not being paid in. If you are running payroll then declare the amount in salary. Debit Salary - Officer and credit shareholder loan.
If you are an S-Corp you could declare the loan as a distribution. Debit shareholder distributions and credit loan shareholder.

EmmaP

Good to know, thank you @Mikeg!