a journal entry is not necessary.  write a check from company 1 to company 2.  use “Loan to Company2” as the account and make it an Asset type account.

in Company 2, enter a new deposit of that check and make it a Liability type account called “Loan from Company1.”

Resolution for 'Company 1 issue: 'Journal Entries – Company 1 to Company 2' available: Yes.

The Company 1 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 Company 1 issue yourself by looking for a resolution described in the article. If it is a complex Company 1 issue or you are unable to solve the issue, you may contact us by clicking here or by using other Company 1 support options.

For more information about resolving issues related to Company 1 in Quickbooks/QBO or to get support for the issue 'Journal Entries – Company 1 to Company 2', click the link below: