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May 30, 2024 1:54 pm
I am planning to dissolve my corporation and have few accounting related questions-
1. In my BS, there are computer equipment worth "3000". Should I just take that as shareholder distribution?
2. What about the $200 amount declared for issuing shares. How to take care of that?
Thank you!
1 Reply
May 30, 2024 2:34 pm
Hi Sam,
If the computer has limited to no value, claim a depreciation expense for the remaining cost on the balance sheet. Otherwise, record $3,000 to dividends, as you received a company asset for your personal benefit.
Do not adjust the share capital, common shares.