How should loans be entered into the 7-step process?

Loan Scenario 1:  

If shareholder loan is FROM company and TO shareholder, it would be a company asset (shareholder note/loan receivable)

If shareholder loan is TO company FROM shareholder,it would be a company liability (shareholder note/loan payable)

Loan Scenario 2:  

If the loan is TO company FROM shareholder - AND if no payments are being made and no payments are planned in the near future.....

Then it might be best classified as owner's equity (which means that it should be removed from the balance sheet)

By removing the loan from the balance sheet (liabilities are reduced), the book value of equity is automatically reduced (A minus L equals OE).

Loan Scenario 3:  

Whether it is current or long term depends on when it will be repaid, but most commonly it will be under long term liabilities