Business total assets = cash in the business bank account at year end + account receivable (money clients owe your business) + Business Inventory at year end (if you sell physical products) + Total cost of business assets purchased since your business started – amounts depreciated so far + Total cost of business intangible assets – amounts amortized so far.
If you keep inventory, you might need to file Form 1125-A cost of goods sold with your Form 1120S. Year-end Inventory could come from that form or from your inventory worksheet.
You will need different types of financial documents your business keeps, to calculate your business total asset.
How to calculate your business assets?
Cash
From your journal entry or bookkeeping, or your bank account, you will get the balance of your bank account at the end of the year.
Inventories
You will need your inventory and sales worksheet to pull the cost of your inventory at year end. You could find it on Form 1125-A Cost of Goods Sold if you filed it.
Start of year Inventory + Purchases during the year – Cost of goods Sold = Inventory at year end.
Buildings and other depreciable assets
Total cost of business assets purchased.
If you have real estate property, or if your business owns a building, the value of the building will be in this section.
Less Accumulated Depreciation
Total amount depreciated in negative will be entered here.
Land
If you have real estate property, or the land your business building seats on, you enter the value of the land.
Intangible assets
Record the cost of your business intangible assets.
Less accumulated amortization
Record total amortized amount with a negative sign.
How do I Calculate Total Assets on page 1 of the 1120S?
Total Assets on page 1 of the 1120S
Total Cash on hand + Inventory on hand + Tangible assets – Depreciated amount + Land + Intangible assets – Amount amortized.
You put the total asset on Form 1120S Page 1 Item F.
You may not be required to submit Schedule L (Form 1120S) or balance sheet when you file your business income tax return Form 1120S, but since you already calculated your business assets, you might as well determine your business liabilities and its shareholders equity.
The different components of business assets, liabilities, and shareholder equity can be found in a balance sheet.
Total Liabilities and Shareholders’ Equity
Account Payable
Record the amount your business owns as short-term debts. An instance is suppliers your business will pay within few months.
Capital Stock
LLC doesn’t have stocks like corporations. However, I like to include shareholders capital contribution in this section. You can track how much you and your partners invested in the business and capture the total on the capital stock line. Capital stock shows how much the business owners contributed into the business.
Retained Earnings
You can include the business profit or loss in this section. If you make dividend distribution to partners or shareholders, that will decrease your retained earnings.
Retaining earnings show how the business is performing. If the retained earnings are low, the business owners might have to fund the business. If the retained earnings are high, the business will be able to expand, purchase new equipment or replace old assets, or make distribution to shareholders.
Total Liabilities and Shareholder Equity
Total liabilities and Shareholder Equity = Accounts payable + Capital stock + Retained earnings.
Total Assets = Total Liabilities (short term debts + long term debts) + Shareholder Equity (Capital stock + Retained Earning – Distribution to shareholders).
Conclusion: How do I calculate “total assets” on pg1 of the 1120-s
The video explains step by step how to calculate total assets on page 1 of the 1120S for 2022.
I you need a worksheet to track your product inventory, Free Inventory and Sales Worksheet F23D1 and Free Inventory and Sales Worksheet F23D2 are available for free on our website under Free downloads https://ninasoap.com/free-downloads/.
If you are looking for a bookkeeping worksheet to make your journal entry and record your business expenses, Free Bookkeeping Workbook for S Corporation F23D3 is available for free under Free downloads https://ninasoap.com/free-downloads/.
To track your depreciable business assets, Depreciation Spreadsheet-Free Download is available under Free Downloads. Depreciation and Amortization Worksheet LD22D1 is available to purchase at https://liberdownload.com/product/depreciation-and-amortization-worksheet-ld22d1/.
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