Hello!
I've been booking draws by two C corp partners under their respective equity distribution accounts. They did not contribute, only withdrew.
Need to know how to make a journal entry to close out the year in relation to retained earnings.
Would it be DEBIT Retained Earnings, CREDIT Owner Distributions (main GL, not each partner's GL) for the total amount they withdrew in 2025?
And it would need to be dated 12/31/2025, is that correct?
Thank you!
