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Balance sheet

Reconcile Schedules L, M-1, and M-2 with Page 1 income for C Corporations

You can tie Schedules L, M-1, and M-2 balances back to the Page 1 income. Use this procedure when amounts are correct but you need to reconcile rounding differences.
  1. Go to
    File
     and open the client.
  2. Select the
    Balance Sheet
     folder, then select the
    Mc
     screen.
  3. Select
    View
    , then
    Return Summary
    . The
    Form 1120 Return Summary
     window shows summary information for key amounts on the return. This tells you which Page 6 totals need to be balanced.
  4. Go to the
    L-2
     screen.
  5. Enter
    0
     if you don't want UltraTax CS to round differences, or a positive number if you want to round differences.
    1. If Schedule M-2, line 8 is less than Schedule L, line 25, enter the difference on Schedule M-2, line 3 (Schedule L, line 25 minus Schedule M-2, line 8).
    2. If Schedule M-2, line 8 is greater than Schedule L, line 25, enter the difference on Schedule M-2, line 6 (Schedule M-2, line 8 minus Schedule L, line 25).
  6. Go to the
    Mc
     screen.
    1. If Schedule M-1, line 10 is less than Page 1, line 28, enter the difference (Page 1, line 28 minus Schedule M-1, line 10) on Schedule M-1, line 5 as
      rounding
      .
    2. If Schedule M-1, line 10 is greater than Page 1, line 28, enter the difference (Schedule M-1, line 10 minus Page 1, line 28) on Schedule M-1, line 8 as
      rounding
      .
  7. If Schedule L, line 15 does not equal Schedule L, line 28, go to Screen L and adjust end-of-year cash by the difference.

This article applies to:

  • PRODUCT: UltraTax CS
  • Return type: 1120 Corporation
  • Subject: balance-sheet-m1-m3
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