USA Transfers between 2 Businesses with 1 owner

[Candi123]

Hi all. I have some questions about transfers from one LLC to another LLC and follow up questioning. I have a few scenarios id like to list here.

Scenario 1. Company A owes me $1000 for 1099 contractor work. Company B pays me $1000 instead and then later, Company A transfers $1000 to Company B to repay.
How would these $1000 transfers be categorized in each companies books?

Scenario 2. Company A receives a transfer from Company B of $2000 and leaves a memo in the transfer, "professional fees". What do i do with this?

I think my biggest problem is I dont know how scenario 1 works, so i have no starting point to form a thought process.

 

[stevuke79]

Assuming you have a writing. (You need a writing if you need company A to show the expense and not Co B. You could also just make this an expense of Company B.)

Scenario 1:
Co A

Dr Expense
Cr intercompany note payable
(But you don't recognize the expense for tax purposes until you pay the payable.)

Co B
Dr intercompany note receivable
Cr Cash

Scenario 2... not enough information.