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payment repaid sums owed by Mr. Combrink to a creditor for
equipment used exclusively by LINKS. (The record does not
reflect the purpose or recipient of the remaining two payments.)
The second type of transaction recorded on COST’s books as
accounts receivable from Mr. Combrink took the form of payments
made directly to LINKS in 1996. These payments are set forth
below:
Date Amount
April 29, 1996 $1,000.00
May 6, 1996 2,000.00
May 15, 1996 3,500.00
June 3, 1996 15,000.00
June 5, 1996 23,805.57
Total $45,305.57
The foregoing nine accounts receivable transactions, totaling
$89,728.73, were consistently treated by Mr. Combrink and his
corporations as loans from COST to Mr. Combrink and as subsequent
loans from Mr. Combrink to LINKS. LINKS recorded the amounts as
accounts payable to stockholders, and the debt resulting from
these and other funds advanced to LINKS by Mr. Combrink was
memorialized by two promissory notes payable by LINKS to Mr.
Combrink in the total amount of $252,481.03.
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Last modified: May 25, 2011