Hi,

My client formed LLC and reported the tax return as partnership.

This year the client elected S-corporation.

On partnership B/S as of 12/31/20 assets is $176K, liabilities is $296K, partner (member) capital account is $149K, retained earnings is $-269K and so equity is $-120K.

In this case how do I report the beginning balance (capitol stock, retained earnings) for S-corporation B/S?

Thank you for your help in advance.