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I need help with the balance sheet on the 1120s! I'm filing for a business that was closed last year, so the only assets left are cash. No liabilities.

Forum|Forum|5 years ago
July 15, 2020
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I'm confused where it's telling me the year's income is a liability, and can't figure out where to adjust it on the assets. I hate accounting!!

TurboTax Live Self Employed

Best answer by Anonymous_

Ok. Thank you so much!!

No problem whatsoever, but I sincerely hope you are aware that the balance sheet is not more consequential as is the fact that your 1120-S is very late; it was due on March 16th and there could be penalties involved for late filing.

Good luck! 😊

A

Anonymous_

Employee

Can you describe the issue (i.e. include numbers) more precisely?

I understand that you hate accounting but (a) you might not even be required to complete the balance sheet and (b) since cash is an asset, you need to balance that out on the liabilities/equity side.

L

Linds_Author

Ok, so it won't let me skip it because my sales are over $250k. 😞 Unless there is a way around that?

My profit is only about $38k. It's showing that as a liability, but I can't figure out where to balance it as an asset.

Beginning bank balance: $9684

Ending bank balance: $0 because we closed the business, and cashed out. Do I need to show what was there when we closed in October?

Retained Earnings: $38,382.

As far as I can see on this balance sheet, that's all it's asking for? But where do Retained Earnings go as an asset??

Thank you so much!!

A

Anonymous_

Employee

Go through the Retained Earnings Reconciliation and check there.

Also, if you closed the business during the tax year, there was probably a distribution to shareholders you did not enter (which will reduce your RE).