Final 1120S and balance sheet
I dissolved a S-corp and disposed of all assets. Do I create journal entries for asset accounts (debit accumulated depreciation and credit asset accounts) to zero them out? Do I have to file any form if we disposed of the assets (form 4797)? I also have the following items on my balance sheet and I am not sure how to close them out and what carries over to the K-1's.
Shareholder loans 1,005.64
Adjustments to S/H equity (-12,989.03)
Common stock 1,000.00
Paid-in capital 2,940.82
Retained earnings 9,341.89
The profit and loss shows a loss 1,299.32.
Can the shareholder loans be a write off? If so, how can i do this? Should all items on sch L (balance sheet) be zeros at the end of year? Should item 8 on sch M-2 be zeroed out or be a final number based on how the balance sheet is handled? Thank you in advance for any assistance with this.