Closing an s corporation journal entries?

Answer 1

Closing the journal entries for an S Corporation involves transferring revenue and expense balances to the retained earnings account, reflecting the corporation's net income or loss for the year. This typically requires debiting the revenue accounts and crediting the expense accounts to zero them out, followed by a debit to the Income Summary account and a credit to Retained Earnings for the net income amount. If there is a net loss, the entries would be reversed. Finally, any distributions to shareholders should be recorded separately to reflect the distribution of profits.