dhartttttt
Level 2
03-25-2022
11:55 AM
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I had a client who had a prior year audit (2018) and I am trying to make the balance sheet balance. However, since I transferred the file year to year the Retained Earnings is now thrown off because it doesn't include the prior year audit changes to the taxable income. Is there any particular area I would make this adjustment or would I just override the Retained Earnings on the Balance Sheet? C Corp by the way.
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sjrcpa
Level 15
03-25-2022
01:01 PM
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M-2. List as prior period adjustment.
The more I know the more I don’t know.
dhartttttt
Level 2
03-25-2022
01:39 PM
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What would be the other adjustment? Technically that income was from 2018 so it isn't taxed but then it leaves the Assets underbalanced.
IRonMaN
Level 15
03-25-2022
01:48 PM
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The other adjustment would be whatever changed as part of the audit adjustment.
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