USA How do I move over Expenses?

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Hello everyone,

I have multiple companies. One of my companies L has income and expenses that actually belong under company B. Company B made this income, however it was directly deposited into company L. Since the money was in L we just charged L with the expenses that came up. I realize that was not good, but I didn't know at the time. Anyway I need to create financial statements for investors on company B. I was told the best way to move the income was to use Due To/From. Then deposit the amount to income and credit the Due To/From account. But how do I move over the expenses? Should I zero them out on L and just add them to B? Please let me know. Any help would be appreciated.
 

DrStrangeLove

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OK, first, we need further and better particulars to give you the right advice.

Are your books on a US GAAP basis? Some firms keep books on a tax basis, especially if they're books for a partnership.

Does Company L own Company B, like as a subsidiary? Are they sister companies both owned by you? I'm trying to figure out why Company L would have booked the payment, revenue and expenses for Company B in the first place, if they're distinct companies.

Are your books on an accrual basis or on a cash basis?

Were the entries you've already made in your current (open) accounting year, or in an earlier (read: already closed to Retained Earnings) year?
 

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