I have a similar situation where a married couple set up an LLC for a rental home. the house was paid in part cash and part mortgage. The LLC owns the house but the mortgage in under their names. In the first year they paid the mortgage via their personal account. Will the BS look as follows:
Assets:
Value of house and Land
Liabilities:
Value of the Mortgage
Capital Account:
Cash paid for the house
Then the mortgage expense will be deductible and the money used to pay it is a loan to the business? Do I record the Loan to the business in their cap account as well?
