This article will show you how to balance an S-Corporate balance sheet on Form 1120-S in Intuit ProConnect.
Before you start:
- To determine why an S-Corporate balance sheet is out of balance, view the balance sheet on Form 1120S, page 4, and determine which line or lines is incorrect or causing the balance sheet to be out of balance.
- Some lines are direct input and output, and some are automatically calculated by Lacerte unless an entry is made on the Balance Sheet screen for that item.
- The balance sheet (Schedule L) and Schedule M-1 aren't required if the corporation’s total receipts for the tax year and its total ending assets are less than $250,000. See Form 1120S instructions.
- To force these schedules when not required:
- Enter a 1 in Schedules L and M-1: 1=force, 2=when applicable [Override] on the Balance Sheet Miscellaneous screen, in the Other section.
Resolving a balance sheet that's out of balance:
Review the asset and liability items below for tips on resolving an out of balance sheet.
Items that are directly entered in Lacerte:
To review and make changes to these items, select Balance Sheet, M-1, M-2, M-3, choose Balance Sheet, and then select Federal. Then, scroll down to the applicable section: Assets or Liabilities and Equity.