Rox
Level 3
‎06-05-2020 03:05 PM
The input fields show two fields for retained earnings: appropriated and unappropriated. The beginning balance of Retained Earnings on the Schedule M2 in my 1120 shows only the unappropriated amount.
abctax55
Level 15
‎06-05-2020 05:03 PM

Does your trial balance have unappropriated Retained Earnings on it? 

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Rox
Level 3
‎06-06-2020 07:32 AM

There was an appropriated amount of retained earnings listed separately on the balance sheet at the beginning of the year. By the end of the year that appropriation had been cancelled and amount was returned to the Retained Earnings, unappropriated account. What I did was to record in Schedule M-2 that Retained Earnings, unappropriated had been increased by the amount of the reserve that was cancelled. I finally got my brain wrapped around that, and it worked. Thank you for your response.

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abctax55
Level 15
‎06-06-2020 12:45 PM

Not sure I really helped, but YVW.

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Kitty2327
Level 2
‎09-08-2020 11:30 AM

I have same problem but how do i clear that amount out?

hallieb
Level 1
‎11-21-2021 05:10 PM

To clear out the unappropriated amount, go into the balance sheet miscellaneous and there is a spot that says ending retained earnings, and you can type in -1 to override it to be zero. Hope this helps!