I prepared Form 1065 with related schedules including two new Forms 6252. After linking the fixed asset worksheets to the forms 6252 (the fixed asset worksheets were created from importing information from Fixed Asset Manager), the schedule L balance sheet is out of balance by the exact amount of the installment sales gross profit from line 16 on the two 6252’s. The Liabilities + Capital is off by this amount. I’ve been over and over the forms and can’t find the error. The M-1 and M-2 schedules appear correct, as does form 4797 page 1 and 2. Schedule K and the K-1's also appear to be correct. The same client had an installment sale in 2015 and everything tied perfectly. I would appreciate any help you can provide to correct the out of balance situation created from the installment sales.
Solved! Go to Solution.
Yes, M-1 Line 6a already has the amount of income from installment sales included. It was automatically entered within the Proseries software. I'm not able to come up with a solution but will keep trying. Any additional thoughts and ideas are appreciated.
I entered a 6252 into one of my clients balanced/completed 1065. Two things I had to do to balance
1) increase my M1, line 1 Net income per books for the total selling price
2) enter the receivable to my assets