Can any one help me understand why my Sch L is not balanced on 1120S ?  the prior year entries are correct? and everything is correct on current year as per books, but there is difference of 118 431? I mean all entries are correct, where would this unbalance source be coming from? I highly suspect it's changes to retained earnings, that's the only account that can be adjusted.  Is it okay to make the line 25 adjustment to balance for the same amout? I don't know how else to fix this because all entries are correct. Thank you for any direction.