What are the accounting journal entries to transfer asset and debt from one S corporation to another both compnays have the same shareholders
State/Country relating to question: Pennsylvania
Sale of an asset
TO transfer an asset to one company to the other you will need to close out both asset and depreciation accounts in the transerring company (Entity 1)
IT should be done as follows...
In the Books of transferring Company (Entity 1)
Accumulated Depreciation A/c DR
TO Asset Cost A/c
TO Depreciaton Expense (Adjustment) A./c
In the Books of the Transferee Company (Entity 2)
Asset Cost A/c DR
Depreciation Expense A/c DR
TO Accumulated Depreciation A/c
I hope the above helps...