Entries to Dissolve S-Corp

[MJG CPA]

My brain just won't squeeze one more thing out tonight - help!!

Single-shareholder s-corp has dissolved business. Only a few thousand of assets, which were distributed to the shareholder in exchange for his stock and an unpaid loan from shareholder of $50,000.

[shareholder loaned money to pay all the debts of the corp before going out of business.]

There are no assets with which to repay the loan. Do I leave the liability on the balance sheet with an offsetting negative retained earnings??

Or zero out the loan and post the offset to retained earnings which zeroes out the whole balance sheet?

[Pacun]

My brain just won't squeeze one more thing out tonight - help!!

Single-shareholder s-corp has dissolved business. Only a few thousand of assets, which were distributed to the shareholder in exchange for his stock and an unpaid loan from shareholder of $50,000.

[shareholder loaned money to pay all the debts of the corp before going out of business.]

There are no assets with which to repay the loan. Do I leave the liability on the balance sheet with an offsetting negative retained earnings??

Or zero out the loan and post the offset to retained earnings which zeroes out the whole balance sheet?

If the shareholder was willing to pay $50,000 for the desk and telephone set, just assign assign the cost of the desk $40K and assign $10K to the analog telephone device. (I am assuming that the only assets were the desk and telephone).

[MJG CPA]

If the shareholder was willing to pay $50,000 for the desk and telephone set, just assign assign the cost of the desk $40K and assign $10K to the analog telephone device. (I am assuming that the only assets were the desk and telephone).

Ooohhhh that's how you do it. Why didn't I think of that! :wacko: