Owner Distribution Question
Ok, have a situation at work and I have no idea how to account for this transaction. Situation is we have two partners, lets call them Jack and Jill. Jack and Jill have a 80/20 structure for Company Bulldozer. Jack has a separate entity called Company Edge, which is 100% owned by Jack. Company edge was supposed to be paying a portion of expenses that does not belong in Company Bulldozer, which amounted to $100,000. Instead of Company Edge reimbursing Company Bulldozer, an agreement was reached to pay out 20% distribution directly to Jill. Now, I believe this has to be recorded in Company Bulldoze since this is a distribution to Jill, but i am unsure how to record this transaction. Any help is appreciated!
Posted Nov 2, 2023, 1:21 AM UTC
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