[SL] Accounting/SL question

[Michael H. <mh...@it...>]

Hi everybody,

    Long time lurker and occasional poster here.  I've searched  
through the archives and found only a couple meagre threads on this.
    We are an S-Corp in the United States and I own 100% of the  
shares.  I pay myself a salary which gets properly recorded in the  
Payroll Expenses account titled "Wages & Salaries".  I also receive  
distributions, which are handled differently according to IRS rules,  
(no SS/Medicare) and my CPA strongly recommended that those be  
recorded in a separate account.  This is all good and well but he  
also indicated that this money would show up as profit (to be passed  
through form K1 at the end of the year).  This has implications for  
the bank as well.  If it's recorded in an expense account like  
payroll then the business never shows a profit so they're a little  
leery of extending lines of credit and whatnot so having it show up  
as profit would be a Good Thing.
    My question then is which section of the accounts should I put it  
in?  How are other people handling this?  (Any CPAs familiar with SL  
reading this list?  :)


Thanks!

Michael