;)
Hello!
I have an S Corporation with 3 Shareholders. They would like to take money out of the company by check. (Not a huge amount) What account should I debit? How does this affect their K-1's?

DR:
CR: Cash

Should their be any follow-up entries for year-end or tax purposes?

HELP!!! and THANK-YOU!! Your help is much appreciated!!!

You're debiting some kind of distribution account, which is similar to a drawing account for a sole proprietorship and partnership. For tax purposes, an S corp is treated much like a partnetship, and I call their "drawing" account for partnerships "Distribution, Person A," "Distribution, Person B." Etc. These accounts would be closed out to their respective Capital accounts at year-end. (Cr the distribution & Dr the Capital.)

As for the K-1, wow, been like 8 years since I've done one of those. Amazing how the memory slips after that much time. :-) You might want to post specific questions on the tax forum, but in the meantime I can at least point you to the instructions:

http://www.irs.gov/pub/irs-pdf/i1120ssk.pdf