Initial Investment and Business Reports

I started a small business, and used a Home Equity as a down payment. The
rest of the money came from an SBA loan. I got the money from the HE loan
before the closing. I deposited the money in the Business Checking Account,
under other income.

Now it shows up in my PL Statement as income, and that is not right. It is
tied to a Liability ( HE Loan). I was thinking of using the value as a
starting balance of the Checking account to get around this, but there must
be another way? How can this be tied together? Thank you.

Cal
Fri Jun 30 12:18:14 CDT 2006

In microsoft.public.money, mad rock <mad
rock@discussions.microsoft.com> wrote:

>I started a small business, and used a Home Equity as a down payment. The
>rest of the money came from an SBA loan. I got the money from the HE loan
>before the closing. I deposited the money in the Business Checking Account,
>under other income.
>
>Now it shows up in my PL Statement as income, and that is not right. It is
>tied to a Liability ( HE Loan). I was thinking of using the value as a
>starting balance of the Checking account to get around this, but there must
>be another way? How can this be tied together? Thank you.

What you want to do is to create an asset account with an initial
balance equal to the loan proceeds. Then transfer the loan proceeds
from that account to the checking account. I don't know if you can
associate the loan to that asset account.