- 12 - 2000 On May 11, 2000, Paulan borrowed $1,350,000 from Old National Bank (formerly Merchants Bank).12 The loan was secured, in part, by Paulan real property and guaranteed by Robert, Lovella, and petitioners. The loan was the source of the following three Paulan checks to Sidal written in 2000: Jan. 21 $200,000 Mar. 28 500,000 Oct. 5 400,000 Total 1,100,000 Although Sidal’s adjusted trial balance for its taxable year ending December 31, 2000, originally reflected a note payable to Paulan for $1.1 million, adjusting entries were made, as of December 31, 2000, to reflect, instead, notes payable to petitioners for $550,000 each. The Promissory Notes Sometime during the years 1997-2000, petitioners each executed promissory notes to Paulan, and Sidal executed promissory notes to each petitioner (collectively, the promissory 12 Paulan applied for, and Old National Bank approved, a $1,750,000 loan. There is no explanation in the record for the $400,000 discrepancy between the loan applied for and approved and the actual amount of the loan.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011