how to handle corporate capital stock when the company is dissolved
Our corporation was dissolved in April. The balance sheet shows Capital Stock equity of > $863k. I read somewhere that the Capital Stock is zeroed out by entering an equal amount against the Retained Earnings account (can't find the website I read about it now). I tried that but I got warning message. I also read that the balance sheet should show zero amounts for everything after everything is accounted for. So I think I need to debit the Capital Stock account and credit the Retained Earnings (or vice versa) but I'm not sure. I already filed the 966 form with the IRS as per the legal counsel's instructions.
how to handle corporate capital stock when the company is dissolved
I think you may be right about retained earnings. You will get a warning when using the account, but it's OK to continue. Then check the results in your reporting and see if it looks correct.
how to handle corporate capital stock when the company is dissolved
I think you may be right about retained earnings. You will get a warning when using the account, but it's OK to continue. Then check the results in your reporting and see if it looks correct.
Need QuickBooks guidance?
Log in to access expert advice and community support instantly.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
