I have a work in progress acct. on my balance sheet on a LLC company. Now it needs to be transferred to a different company which is a S corporation. These are two different companies what journal entries do I need?


Thanks,
Trini

Is there an expectation there will be transfer of funds at some point?You need to know policy on intercompany transactions

Intercompany transactions in related companies are usually made in intercompany accounts kept in the receivable or payables sections of the ledger

So you will credit the work in progress account and debit the S Corp account in the LLC accounts and debit the work in progress and credit the LLC Corp in the S corp accounts

Alternatively you could use the billing system to raise an invoice.

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Originally Posted by paraclete

Is there an expectation there will be transfer of funds at some point?You need to know policy on intercompany transactions

Intercompany transactions in related companies are usually made in intercompany accounts kept in the receivable or payables sections of the ledger

So you will credit the work in progress account and debit the S Corp account in the LLC accounts and debit the work in progress and credit the LLC Corp in the S corp accounts

Alternatively you could use the billing system to raise an invoice.

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Thank you so much for your answer. It was so simple, and I made it look so difficult. I feel really silly.