What do I do on the final balance sheet? Normally when closing a business the ending balance sheet is all zeros … correct ?? At least that is what PA told me one year when I put the endings on the balance sheet and then attached the form showing where all assets went. They informed me that the balance sheet should be all zeros for ending balances when a business closed. The IRS never questioned the ending balance sheet.
Now my question is …. This S-Corp is filing bankruptcy. The business closed. There isn't really all that much in the way of assets. They equal a small inventory of $ 5000, one vehicle (which is being repossessed by the bank) and a bunch of small office equip, etc. totaling less than $ 10,000. Expenses with Accounts payable and loans payable total more than $ 150,000.
Does my ending balance sheet show all zeros or does it show the ending balances as with any other year that they are in business with the assets and expenses listed?
Now my question is …. This S-Corp is filing bankruptcy. The business closed. There isn't really all that much in the way of assets. They equal a small inventory of $ 5000, one vehicle (which is being repossessed by the bank) and a bunch of small office equip, etc. totaling less than $ 10,000. Expenses with Accounts payable and loans payable total more than $ 150,000.
Does my ending balance sheet show all zeros or does it show the ending balances as with any other year that they are in business with the assets and expenses listed?
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