In 2017 my S-corp lost a great deal of money because of extremely low sales. This was a temporary condition and I expect a banner year for 2018. I have never run a loss in the 25 or so years I've been an S corp. Usually I take excess profits as a dividend, and make a General Journal entry to net those dividends against Retained Earnings. In 2017 I paid into the corporation and did not take any salary. Do I show negative Retained Earnings this year, or must I formally make this a loan to the corporation?
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Your cash payment into the S-Corp is considered a Contribution, which increases your equity. This transaction does not affect Retained Earnings.
Report this under Business Info >> Partner/Member Information. Edit the member info, and continue through the interview until you come to the Capital Summary page. Enter the amount you paid into the company as a Cash Contribution.
However, the loss you experienced this year will reduce Retained Earnings. This will be recorded automatically from your entries for income and expenses.
Your cash payment into the S-Corp is considered a Contribution, which increases your equity. This transaction does not affect Retained Earnings.
Report this under Business Info >> Partner/Member Information. Edit the member info, and continue through the interview until you come to the Capital Summary page. Enter the amount you paid into the company as a Cash Contribution.
However, the loss you experienced this year will reduce Retained Earnings. This will be recorded automatically from your entries for income and expenses.
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