s corp question...

  • Thread starter ~^ beancounter ~^
  • Start date

B

~^ beancounter ~^

s corps have no retained earnings, right? they are distrinuted to the
owners via the k1 @ the end of each year, right?

if so, whats the je look like at the end of the year (in quickbooks) to
close
out the retained earnings account?

thanx...
 
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S

Steve

s corps have no retained earnings, right? they are distrinuted to the
owners via the k1 @ the end of each year, right?

if so, whats the je look like at the end of the year (in quickbooks) to
close
out the retained earnings account?

thanx...
S-corps have retained earnings, the income just gets passed through or
assigned to the owners by the K-1 process. (for taxes) The equity section
of the balance sheet looks about the same as a regular corp and there are
year-end closing procedures but it doesn't involve moving the income off the
balance sheet!























































..



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B

~^ beancounter ~^

Steve, so is it true the retained earnings would equal all monies
"sent" to the 1040's via a k1 schedules?
 
S

Steve

Steve, so is it true the retained earnings would equal all monies
"sent" to the 1040's via a k1 schedules?

No, the K-1 amount represents the current year's taxable income.

















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B

~^ beancounter ~^

right, so say a s corp is in business for three years...each year
the copr has $10k profit, $10k x 3 years gets "k-1'ed" to the sole
owner (100%)....The retained earnings account would have a
balance of $30k, right?....thanx !!!
 
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S

Steve

right, so say a s corp is in business for three years...each year
the copr has $10k profit, $10k x 3 years gets "k-1'ed" to the sole
owner (100%)....The retained earnings account would have a
balance of $30k, right?....thanx !!!
correct, assuming no withdrawals or other transactions






















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