S-Corp: How do I handle initial cash infusion that started the company?

[Mike or Penny Novack]

On 12/24/2016 3:22 AM, Colin Law wrote:
> On 23 December 2016 at 20:20, bmenger <bmenger at hpcsociety.org> wrote:
>> Oops, my mistake on saying all marked out areas were the same. You are correct in that the bank account is $5000 less.  Still can't figure out what is wrong on the initial deposit.
> What account have you specified the initial deposit to come *from*? It
> goes *to* the checking account, but which account does it come from?
> Select the initial deposit and click on the split button to see the
> details.
>
> Colin
That is the key question here. My SUSPICION is that what you were doing 
was LOANING the corporation the $5000 and then later paying off this 
loan and that the other side of this transaction would have been a 
liability account. But I am not a professional accountant versed in the 
rules about loans of a shareholder to an S corporation. It might have to 
be treated differently even though the intent was a temporary loan. We 
on this list are only competent to tell you HOW to do something using 
gnucash, not WHAT you should be doing.

Michael D Novack