Question
How do I adjust Retained Earnings after prior year audit changed my client's tax able income?
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.
