Did the owner lend the business the money? If so, she can realize the $5k as a repayment of the loan, assuming the organization is paying her a reasonable interest rate. (She will pay taxes on the interest income.)

This is an overly simplistic statement, but generally speaking, the ins and outs of cash between her and her company do not affect the tax liability of the business. If the company made a profit, it will need to be reported somewhere (depending on the legal structure of the company - her tax returns or the business's).

Bill, on a side note, you've got your debits and credits reversed....the result of the owner purchasing supplies for the company would be a Debit to Supplies, and a Credit to Equity.

But more to your question, just skip Equity altogether and use a simple short-term payable account. When the owner pays a small biz expense for the company from her own funds, just Debit the expense, and Credit "Short-Term Payable: Owner" (or something similarly titled). When the company reimburses the owner, you'd Credit Cash and Debit the Payable.

As to the question of interest on a shareholder loan to a company, under certain circumstances interest must indeed be charged when the loan is between a shareholder and a corporation, and the amount exceeds a de minimis threshold. Doesn't sound like your scenario rises to this level, but consult Code Section 7872 (or your tax advisor) just to be sure.

Well quick book is a very good sofwtare and like your way of helping others!

Keep doing good work!