The net income is part of the retained earnings on the balance Sheet.
Let me know if you have any questions.
If all your assets are correct and you have included your net income after all adjustments on Line 24 than your Line 15 and Line 27 should balance. I would suggest you to complete sch M-2 below the Sch L and transfer the balance from line 8 on M-2 to Line 24 on Sch L.
Let me know if you have any question. Bonus and Feedback will be highly appreciated!!!
Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases.
What amount are you showing on Sch M2
can you list the entries from M2
Line 8 on M2 should match your retained earnings plus net income. If it does not than there is an error.
From limited information, it is difficult for me to point it out.
Yes, Line 8 in most cases shouls match Line 24 od Sch L
You can email the file to firstname.lastname@example.org and ask them to forward to me.
I have not received your files yet.
Btw, what was the amount of Line 24 on your last years form 1120S
Btw, I have reviewed your complete tax return and financials and few things that I have noted-
Last year your retained earnings on Balance Sheet, Sch L was $46,167 but your Balance sheet as per financial statement shows the retained earnings as $57,054. So there is some adjustment or some changes that have affected the balance. This difference needs to be figured out. Normally the closing retained earnings balance on the Sch L should match with the opening retained earnings(as per financials) balance for next year
On the tax return- expenses side- You have meals and entertainment recorded twice as Travel ($2,435) and meals (50% at $1218). If you delete the figures from travel(since travel expense is recorded separately under the itemized listing)- Your profit will on Sch M-1 will match your profit and loss account.
Once you figure out the reason for the difference in retained earnings your balance sheet will balance and also Line 24 on Sch L will tie to Line 8 on Sch M2.