FORM 1065 RETAINED EARNINGS ADJUSTMENT
ACCOUNTING FOR RETAINED EARNING ADJUSTMENT ON 1065 BALANCE SHEET.
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bgKOjJu4Kr4yUOacwZ5xHE
02/09/12 5:50pm PST
Viewed by asker 02/09/12 9:59pm PST
Viewed by asker 02/09/12 9:59pm PST
5 Replies
sjrcpa
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02/09/12 5:52pm PST
A partnership has Partners' capital, not retained earnings. Can you make this into a more specific question? Is it a Lacerte question or did you land in the wrong forum?
The more I know, the more I don't know.
02/09/12 7:11pm PST
Thanks for your reply. My quickbooks B/S balances but the difference of these issues was balanced to Retained Earnings. I have recorded owner capital contributions of 100,000. They paid a 70,000 payment to purchase the business with a 30,000 residual loan with a balnace of 27560 at 12/31. There is also an adjustment for the difference in the check book to bank balance due to cash paid out, etc. hope this helps.
02/09/12 9:08pm PST
So is this a Quickbooks question or a Lacerte 1065 tax question? If it a tax question, give us the Balance sheet accounts and amounts so that we can try to help you. It appears that the partnership is just starting out and there are very few accounts. If it is a QB question you have landed in the wrong forum.
SuzieQFL
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02/09/12 8:30pm PST
This is not a Retained Earning Adjustment. Your QuickBooks balances because you forced balanced to Retained Earnings. Sounds like your entries should have been:
1) Debit checking $100,000
Credit Capital $100,000
to record owner capital contribution
2) Debit Assets (may be fixed assets and/or goodwill) $100,000
Credit checking $70,000
Credit notes payable $30,000
to purchase business
3) Credit checking (I assume these payments were made from the checking account) $2,440
Debit notes payable $2,400
to make payment on loan payable
02/09/12 9:59pm PST
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Thanks for your assistance, it was setup as a S Corp to begin with, hence the use of RE.
