Hey guys, I'm hoping you can help me with a journal entry I'm working on in a pro forma balance sheet. I'm building an LBO model and the business started with $2mm of cash. I've already created my purchase accounting entry, funding entries, transaction expenses, and deferred financing fees. Now, I'm left with the same $2mm amount of cash on the balance sheet. Based on deals I've done in the past, the Seller typically takes this entire $2mm of cash with him after financing, leaving $0 on the BS (unless PE firm decides to fund a cash amount). My question is, what is the journal entry for "sweeping" all the cash to the Seller? It's a credit to cash and a debit to ____?
Also, in my sources/uses, the seller gets $x of cash, but after he sweeps the $2mm on the BS, is he actually receiving $x + $2mm?