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How can I help with you 1120S Schedule L question?
In 2010 and 2011 another accountant prepared taxes for this 1120S Corporation. I have now been hired by them. The prior accountant made errors and now that I am doing 2012, I am so confused. I have the client's Trial Balance Sheet, P & L but no actual Balance Sheet. I have completed the tax and am working on the 1120S and of course it does not balance. I also am using a new Software program that I am not as use to as the one I use to use. Can you help me?
Sure but you need the balance sheet of the S-corp.
You can't do the Schedule L without it.
There are too many variables to complete the Schedule L accurately without actually getting the clients balance sheet.
So if you don't have the client's balance sheet then you'll have to get it or prepare it.
I have just went through their folder and they have given me everything but their Quick Books Balance Sheet. I am not even sure they keep their balance sheet up to date.
You need to get the balance sheet. If it is not up to date then you could basically reconcile the cash accounts to ensure all cash transactions are captured. Then you would have to verify all the fixed assets, receivables, and payables.
IF I have to prepare it, with what reports I have being the ones I mentioned and their General Ledger and Payroll Reports, is that going to be possible.
If you have the general ledger then you would have all the balance sheet accounts
you have the general ledger?
Fixed Assets being that of all depreciated property plus income for 2012, receivable being monies brought in and payables, money paid out, right?
Yes I do have the General Ledger
regarding the GL - basically you have all the opening balances and these opening balances for the balance sheet accounts should agree to the 2011 balances as reported on Schedule L.
If those do not agree then the client either booked something to 2011 or the prior preparer made entries to the tax return that are not recorded on the books.
Basically you need to compare the prior year Schedule L to the opening balances onthe GL. The should agree. If they do not then you need to reconcile the variances.
Then you can make the 2012 balance sheet.
This is going to take you some time. if you have other client work then the best thing to do would be to request a balance sheet as of 12/31/2011 and 12/31/2012. QuickBooks does this automatically.
I am not going to be able to do this at this very moment. Will I be able to reach you tomorrow, when I get this balance sheet compared to 2011/ If so, please tell me how to get directly to you.
Yes certainly you can reach me tomorrow. Just save the link in your webbrowser and come back and we can continue to chat. It will be about the same time, perhaps an or so earlier. I will try and check the site periodically throughout the day and respond as soon as I can.
Ok thank you so much.
No problem. Chat tomorrow. :)