[celinet]

I have a simple business with loans and inventory that we closed in October 08. What journal entries do I make in order to close this business and file my 1120S?

[Booky]

If you have sold the inventory, then you adjust the inventory by the sale revenue. If it was discounted to sell, then the remaining value is adjusted into shareholder's distributions.

All loans will probably still need to be paid by yourself personally and they would be closed into shareholder's distributions as well.

The result is that the business has no assets, no liabilities and the net difference is your distribution that will be closed into the final retained earnings or accumulated deficit of the business.

[celinet]

Thank you so much! I appreciate it.