USA S-Corp Balance Sheet Question and affecting basis


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Hello,

Created a S-Corp in 2019 (should have gone another route but that's the advice I got at the time) .

First year net profit was 6000 approx. But I had laptop purchase of $500 approx and meals expenses of $320 approx.

Now bidding on a small project but am asked to provide a balance sheet. Cash in bank at the end of each month is only $100 (that is my equity) as I take excess as distributions (per advice given to me). But I see a K-1 that has profit of 6160, and something that says 160 affects shareholder basis.

How do I handle laptop in assets and should I account for 160 that is i think meals not deductible.

I took 179 deduction for laptop
 
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Werner Reisacher

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Who prepared the K-1 for you? That person has all the information you need to create Financial Statements for 2019. Ask him for copies of the Tax Return IRS Form 1120-S and you will find the information you are looking for on Schedules L and M's attached to this Form.
 

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