Balance Sheet Question

[Corduroy Frog]

Most entities of one kind or another have a "Balance Sheet", normally Schedule L or something similar.

When an entity (for example, an S corp) shuts down and is liquidated to the owners, should the balance sheet reflect zeros at the end of the period, or should it reflect the balances just prior to the liquidation?

[JimTaxes]

I have shown zeros when I was faced wiht this. 

[Lee B]

1 hour ago, JimTaxes said:

I have shown zeros when I was faced wiht this. 

The exception to this would be when you accrue post liquidation expenses, for example legal and accounting fees.

[Corduroy Frog]

Lee, if there are items to accrue is the entity really shut down??  Thanks in advance.

[Lee B]

If you want to dive into the details,  there was a discussion about this topic started by schirallicpa on March 14th.

[michaelmars]

On 11/21/2024 at 1:48 PM, Lee B said:

If you want to dive into the details,  there was a discussion about this topic started by schirallicpa on March 14th.

For fun and giggles I tried to find the referenced discussion and no matter how i searched, i couldn't find it.  Can you walk me through it?  I always have trouble searching boards like this.

[Lee B]

Enter "closing a corporation" in the search box.  Be sure to include the quotation marks.

[jklcpa]

2 hours ago, michaelmars said:

For fun and giggles I tried to find the referenced discussion and no matter how i searched, i couldn't find it.  Can you walk me through it?  I always have trouble searching boards like this.