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marinel_98

Question

Balance Sheet

Forum|Forum|3 years ago
January 30, 2023
3 replies
0 views

Hi,

For my balance sheet it is not balancing. I also think the tax payer who filed our taxes last year did it incorrectly.

My balance sheet is as follows:

This was the end of year for 2021

Cash $502,705

Less accumulated depreciation: $73,345

Total Assets: $576,050

Mortgages and Notes payable 1 year or more: $45,768

Other liabilities: $149,167

Additional paid in capital: $79,000

Retained Earnings: 313,632

Total Liabilities and shareholder's equity: $587,567

For 2022 I have:

Cash: $239,199

Assets: $60,926 - $7,775 (depreciation)

Land: $7,000

Mortgages and Notes payable 1 year or more: $44,528

Other liabilities: $144,583

Additional paid in capital: ?

Retained Earnings: ?

TurboTax Business Windows

Anonymous_

Employee

Did you transfer this in to TurboTax Business? I presume you are preparing an 1120-S, but more information is going to be needed.

For example, what happened to your total assets?

Also, are the figures you posted for 2022 beginning or ending figures?

marinel_98Author

Those are ending 2022 figures, and he marked 2 leased vehicles we had as assets.

Anonymous_

Employee

That is most likely the proper treatment on a financial statement for a capital lease.

Rick19744

Employee

A number of comments:

Balance sheets are always the bane of taxpayers since the figures are more of less just input from the taxpayers books and records.
Do you maintain your books and records using some type of software; Quickbooks, etc?
There appears to be a significant drop in cash. Does this make sense?
- Were there distributions?
- Doesn't appear that $$ were spent paying down debt or purchasing additional assets
I don't see anything reflected for capital contributions. Were there any?
Are you satisfied with the additional paid-in capital figure?
Keep in mind that your balance sheet will need to "roll" from the beginning of the year to the end of the year and this will need to be addressed in the Sch M-2 section.
Are you satisfied with the end of the year (2022) figures you listed, except for the question marks?

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

marinel_98Author

- I use quickbooks to maintain our records.

- The cash difference in 2021 was entered wrong by the tax preparer, but the one for this year is accurate, there were distributions in total of $68,300 to the owners.

- There weren't any capital contributions.

- Additional paid is also incorrect as there aren't stocks, it's just 2 owners which each have 50%

- I am satisfied with the 2022 end of year figures, everything is reconciled and matches all bank statements.

Rick19744

Employee

Thanks for the follow-up response:

I would not amend a tax return for an incorrect balance sheet. This will only cause confusion at the IRS. This assumes that the 2021 tax return (taxable income and K-1's) were correct.
Are you saying that you never made any capital contributions?
What entity type are you filing? S corp, c corp, or LLC filing form 1065?
Based on your response, are you indicating that all end of the year amounts reflected in your initial question are correct? And these amounts agree to your QuickBooks?

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

RobertB4444

So it looks as though your balance sheet issues are caused by the numbers from your 2021 return. You need to correct those numbers to reflect reality and not what was entered in error. You can try to adjust them in your 2022 return but you may have to file an amended 2021 return to get the correct numbers in there.

@marinel_98

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