- 16 - Year Ended: Sept. 30, 1989 Sept. 30, 1990 Beginning Balance $ 757,530 $1,082,602 Advances to Georgiou 857,360 2,608,562 Repayments (532,000)1 (1,700,909)2 Ending Balance $1,082,602 3 $1,990,256 3 1The 1989 repayments consisted of one check for $325,000 dated 9/3/89 and a journal entry of $207,000 that represented an offset of rents that Kolonaki owed Georgiou on the rental of a building owned by Georgiou (the amount was reported on Georgiou's Form 1040). 2The 1990 repayments consisted of three journal entries: $1,186,000 "to record investment in Judy Alexander [JAI] as of 10/1/89 for consolidation purposes" (the entry was actually made in April or May 1991); $312,161 "to record Kolonaki loan to Alexia as of 10/1/89"; and $115,000 that stated "George paid the monies to Alexia for Kolonaki's purchase." 3The errors in calculations are from Kolonaki's journal and from rounding. No promissory notes were executed for the advances from Kolonaki's Account 121--Loan to Shareholder from 1980 through the years in issue. No maturity date was set for repayment of the advances. Georgiou did not pledge any collateral as security for the repayment of the advances from 1980 through 1990. Kolonaki did not take any action to enforce the repayment of the amounts advanced to Georgiou. However, a March 28, 1991, letter from Bernard to Georgiou stated: Enclosed please find an original and one copy each of Security Agreement, Consent by Directors to Corporation Action dated June 30, 1988 and Consent by Directors to Corporate Action dated June 30, 1989.Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
Last modified: May 25, 2011