Moving APIC to Retained Earnings

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#1
LvKCPA  
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North Carolina
Is it okay to just move/clear out Additional Paid in Capital to Retained Earnings?
 

#2
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WA State
What's your goal?
I would argue, no. Such a reclassification changes the implications of those two accounts on the face of the financial statements. You're potentially misleading readers of the financial statements with such a change.
~Captcook
 

#3
LvKCPA  
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39
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20-Feb-2019 9:38am
Location:
North Carolina
The bookkeeper moved them over so I am waiting to hear back a response to why that was done. It's a four person S Corp and I am not sure why APIC was there. Prior CPA made the entry but why not just add it in as owner contributions?
 

#4
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6043
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What would be the difference between "APIC" and "owner contributions"?
There's no "owner contributions" line on an 1120S. I would normally include these under APIC on the tax return and, for consistency, describe them as the same on the financial statements.
~Captcook
 

#5
jon  
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minnesota
Never to retained earnings, always to Capital Accounts - in fact "par" has disappeared from CAPITAL account description - I think!!
 


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