u/Interesting-Salt-366

Relatively new bookkeeper and I have my first S-corp client. I am hoping to get a gut check on setting up the BS and opening balances.

Business started 2021, never had bookkeeper but used a tax filing service. Started electing S-corp 2024 and 2025. I have their 2025 personal and corporate returns. There are two partners and they're married.

No assets besides vehicles, no liabilities besides CC.

What's done so far:

• I've got Jan 1, 2026 opening balances for their bank accounts / cc
• They've put their personal vehicles into service, so I made asset + contra accounts for each vehicle and recorded the accumulated depreciation from their Depreciation Detail Listing.
• Pulled 2025 equity from the diagnostic summary on their 1120, divided between partners based on percentage of ownership, and put it in each owner's capital account as an opening balance.

Questions

• How do I record common stock? 1120 shows 150 shares, divided 40/60 but not what those shares are worth?
• There is information related to stock basis on their personal returns form 7203. Is this something I need to capture?
• Is there anything else I need to pull off their tax returns to include in the BS?
• Are there any accounts that need more historical transactions to be accurate? E.g. my understanding is that the 2025 equity on the tax return is a reflection of the year's end retained earnings after expenses, owner salaries, and distributions, that it belongs in the owner's capital account, and that this number is cumulative, meaning it's a snapshot in time and I don't need to go add "equity" from previous year's returns to it.
• Is there anything related to when the second partner joined the business two years ago that needs to be captured?

Thank you!