for the balance sheet portion of the 1120-S form, that would leave me with nothing but zeros for except maybe a couple equity items that would wash to zero. that's ok. some firms I worked for preferred that all equity lines be zero. usually, capital stock would be positive and retained earnings would be negative by the same amount. we would eliminate the capital stock and to balance retained earnings would add a line in the M-2, if required, (line 3 other additions) that says liquidation.
