Comments on: The General Journal – Your Most Versatile Accounting Tool http://blog.reallifeaccounting.com/2004/11/01/the-general-journal-your-most-versatile-accounting-tool/ Sharing accounting knowledge step-by-step Sat, 03 Jul 2010 00:53:09 +0000 hourly 1 http://wordpress.org/?v=3.0 By: John http://blog.reallifeaccounting.com/2004/11/01/the-general-journal-your-most-versatile-accounting-tool/comment-page-1/#comment-4958 John Tue, 19 Jan 2010 22:08:24 +0000 http://www.reallifeaccounting.com:8080/blog/?p=46#comment-4958 Sandi: I'm trying to understand the nature of your question. Retained earnings in an S-Corp is really called a "triple -A" account. But for simplicity sake let's clarify that the retained earnings account is essentially an accumulation of all the previous profit, losses, contributions, and distributions of the corporation. When you say, "move money out of retained earnings" what do you mean? Do you mean writing a general journal entry that decreases retained earnings and move the amount into another account? What would be this "owners separate account" called, and what would be its purpose? Perhaps you are thinking that in the case that there is more than one stockholder you would need to keep track of each stockholder's equity separately on the balance sheet? Your tax preparer should be keeping track of each stockholder's basis when the tax return is completed each year. This is done for a single stockholder also. Tracking basis is done off balance sheet. Let me know if I didn't quite get what you were asking. John Sandi: I’m trying to understand the nature of your question. Retained earnings in an S-Corp is really called a “triple -A” account. But for simplicity sake let’s clarify that the retained earnings account is essentially an accumulation of all the previous profit, losses, contributions, and distributions of the corporation. When you say, “move money out of retained earnings” what do you mean? Do you mean writing a general journal entry that decreases retained earnings and move the amount into another account? What would be this “owners separate account” called, and what would be its purpose? Perhaps you are thinking that in the case that there is more than one stockholder you would need to keep track of each stockholder’s equity separately on the balance sheet? Your tax preparer should be keeping track of each stockholder’s basis when the tax return is completed each year. This is done for a single stockholder also. Tracking basis is done off balance sheet.

Let me know if I didn’t quite get what you were asking.

John

]]> By: Sandi http://blog.reallifeaccounting.com/2004/11/01/the-general-journal-your-most-versatile-accounting-tool/comment-page-1/#comment-4954 Sandi Tue, 19 Jan 2010 15:47:53 +0000 http://www.reallifeaccounting.com:8080/blog/?p=46#comment-4954 In an S corp with single owner should I move money out of retained earnings of business into an owners separate account at end of year? Or doesn't it matter being only single owner. In an S corp with single owner should I move money out of retained earnings of business into an owners separate account at end of year? Or doesn’t it matter being only single owner.

]]> By: John http://blog.reallifeaccounting.com/2004/11/01/the-general-journal-your-most-versatile-accounting-tool/comment-page-1/#comment-4547 John Sat, 26 Dec 2009 21:13:48 +0000 http://www.reallifeaccounting.com:8080/blog/?p=46#comment-4547 Joe: I've always used the Mosich & Larsen Intermediate Accounting book. Not sure what the latest addition is. Mine is the 5th edition from 1982. John Joe: I’ve always used the Mosich & Larsen Intermediate Accounting book. Not sure what the latest addition is. Mine is the 5th edition from 1982.

John

]]> By: Joe http://blog.reallifeaccounting.com/2004/11/01/the-general-journal-your-most-versatile-accounting-tool/comment-page-1/#comment-4513 Joe Fri, 25 Dec 2009 03:20:11 +0000 http://www.reallifeaccounting.com:8080/blog/?p=46#comment-4513 I was looking for a good intermediate accounting book. Saw a few options at http://www.intermediateaccounting.net . Any suggestions? I was looking for a good intermediate accounting book. Saw a few options at http://www.intermediateaccounting.net . Any suggestions?

]]>