Retained earnings can't be the only balance that's different. What else is different on the tax return? Thanks, Bill
cash- but its only off by $4
is there a way just to fix retained earnings?
There may be if an income or expense account is the reason for the difference. If another balance sheet account is different, then simply adjusting retained earnings does not correct that account. Are a lot of accounts different? Thanks, Bill.
I answered you yesterday, too. This is what I wrote then for figuring out the journal entry: First of all, list all of the accounts down one page--or on Excel, showing the book totals of assets as positive, the liabilities and income as negative and the expenses as positive. The sum of the accounts should be zero. Then enter a column for the tax amounts. Find the differences and you've got the journal entry. Hope this helps, Bill.