Owner purchasing company vehicle for personal use

[Cheyenne44]

The owner is purchasing the company vehicle for his own personal use, but is not actually paying it. Instead he wants us to "pay" him the amount of the loan payment each month ($900) to show he is receiving an income, but use it to write down the amount he owes the company for the truck. The business will also keep paying the loan on the vehicle until it is paid off. How do I record all of this in my system?

[taxtips]

My interpretationis this:

Journal entry for purchasing vehicle
Debit Shareholder Loan
Credit Vehicle Loan

Journal entry for monthly payment

Debit Vehicle Loan
Credit Cash

Debit Salaries or Contract work
Credit Shareholder Loan