"You got this part right."

Paid In Capital = Equity, which I teach as "ownership position."

Loan from Shareholder = Liability, as debt. It would never be named Paid In Capital.

@sjrcpaDo you have any further input and what they should have done with that initial money? Why would they name it Paid In Capital, if they intended to be repaid? Because now this person seems to want to take back that amount:

https://proconnect.intuit.com/community/proseries-discussions/discussion/re-1120s-can-additional-pai...