My S-Corp is very simple. I just earn the money as a contractor. I am the only shareholder.
I am trying to fill out Balance Sheet of Form 1120S. It is very simple, but I am not sure what to balance Loan to Shareholder with in Liabilities section. Should I balance it with Retained Earnings such as below?
How is it typically done in the simplest possible scenario such as mine.
I have:
End of the year:
Assets:
Line 1. Cash = $1000
Line 7. Loans to shareholders = $5000
Line 15. Total Assets = $6000
Liabilities:
Line 24. Retained earnings = Should I put $6000 here?
Line 27. Total Liabilities = $6000
Thank you in advance,
Jason