Closing costs associated with purchase of rental property

I've created a general journal entry to capture the purchase of a rental property. Currently it looks like this (info taken from HUD statement, type of account in parentheses):

PROPERTY NAME (fixed asset): Purchase price of $111,000

CLOSING COSTS (expense): $810

MORTGAGE PRINCIPAL (long term liability): $83,250

CLOSING CREDITS/CREDITS TO BUYER (other current asset): $348.13

EARNEST DEPOSIT (other current asset): $1,000

DOWN PAYMENT FUNDS (other current asset): $27,211.87

First, are all the accounts I've established accurate?

Second, this transaction now shows negative amounts in my chart of accounts for my credit to buyer, down payment funds, and earnest deposit accounts. Do these just stay as is or do I need to zero them out? The credit to buyer would have just adjusted the total due at closing (no money changed hands), whereas the earnest money and cash paid at closing was an actual transaction. Typically we take a draw from another company we own when needed to help cover the down payment, otherwise it would come from the rental property checking account.

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Closing costs associated with purchase of rental property

"First, are all the accounts I've established accurate?"

You're close. There is no need to make an entry for the buyer credit. Also, just to confirm, settlement fees/closing costs should be included in the basis of the property. See IRS Pub. 551, page 2.

"Second, this transaction now shows negative amounts in my chart of accounts for my credit to buyer, down payment funds, and earnest deposit accounts. Do these just stay as is or do I need to zero them out?"

The credit to buyer goes away and reduces your basis in the property. The down payment should be assigned to the bank account it came from. If it came from another business, then you should assign that to a liability account since you owe the down payment to that business. The earnest money, when paid, should have been recorded as an asset if the company paid it and then, when you closed, the $1,000 payment (credit) would have cleared that entry. If the earnest money was paid by the other company, it becomes part of the liability amount owed.

Did the earnest money and down payment come from the other company? If so, and assuming the closing costs are non-deductible, the journal entry is below. If I'm not understanding that correctly, please advise.