QB Issue Resolution:
You are correct, It is not a loan. They are investing in the corporation.
So the cash is recorded as a debit to the corporate bank account and a credit to the individuals capital account. You will need to setup a capital account for this individual with 2 subaccounts -contributions and distributions. When you deposit the money, select the contribtuiton account as opposed to an income account. This will debit cash and credit the contribution account.
Going forward, the new shareholders portion of net income will close to his/her capital account and distributions will reduce his/her capital account.
Setup new account in Chart of Accounts
1. Go to Lists on the top task bar.
2. Click on Chart of Accounts
3. At the bottom of that screen you will see a button labeled “Account” – click on it
4. Click on new
5. Select account type
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Resolution for Issue 'How to enter ‘Contributing Capital’' available: Yes (Solved).
Source: Intuit Community forum.
How to enter ‘Contributing Capital’: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for capital
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