DBAN1957 Posted March 2, 2009 Report Share Posted March 2, 2009 I have a little S Corp that is closing his business. Beginning and ending inventory is the same same number, let's say $1000.00. There was no sales or activity for 2008. The inventory went to the shareholder. I did the debit to distribution and credit to inventory on the books. However, how do I show the Schedule A. If I show no ending inventory, I get a $1,000 for COGS. If I want to show no ending inventory or COGS, then I have to show negative purchases. So my question is how do you show Sch A (COGS) on a final return when the shareholder takes the inventory home? Do I leave ending inventory equal to the beginning inventory? Thanks Dave Quote Link to comment Share on other sites More sharing options...
Maribeth Posted March 2, 2009 Report Share Posted March 2, 2009 You did have a sale in 2008; it was the sale of the inventory to your shareholder. Your journal entry s/b a credit to sales, debit to distribution, credit to inventory, debit to COGS. If your state imposes a sales tax, that would have been due at the time of the sale to the shareholder. Maribeth Quote Link to comment Share on other sites More sharing options...
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