USA S Corporation

[Bookkeeper1]

There are two owners of an S corporation. They each purchase personal items through the corporation that are not business expenses. I can't use a Draw nor Shareholder Distribution account to capture this information. What account can I set up to capture this information?

 

[jwmca.com]

Why cant you?
Make a due to shareholder account for each of them then.

 

[Bookkeeper1]

There are two owners of an S corporation. They each purchase personal items through the corporation that are not business expenses. I can't use a Draw nor Shareholder Distribution account to capture this information. What account can I set up to capture this information?

Why cant you?
Make a due to shareholder account for each of them then.

Thank you very much for the idea.

 

[Ashley K. Knowlton MBA]

What are you trying to capture? The amount they owe back to the corporation?

 

[Bookkeeper1]

What are you trying to capture? The amount they owe back to the corporation?

No, the shareholders will not owe these amounts back to the corporation. I am not sure how to post them because they are not expenses to corporation. I am trying to capture the amounts that are spent on personal items, paid by the S corporation, so that at the end of the year when it comes time for the shareholder distribution these numbers can be taken into consideration.

 

[Ashley K. Knowlton MBA]

I'd just do an accrual then...and then at distribution date just reclass the accrual back against the distribution