Balance sheet and book income prepaid and accrual adjustments
Federal, state, and city accrual adjustments affect balance sheet prepaid and accrued accounts. You can add the federal accrual adjustment to make 1 net adjustment.
Balance sheet prepaid and accrued accounts
Go to the
Tax Accrual
folder and select the TaxAc1
screen. If you enter
X
in the Accrue federal income tax
field, UltraTax CS subtracts the amount in the Prepaid federal income tax - end year
field in the L
screen from the amount in the Federal income tax payable - end year
field in the L-2
screen. Next, it adds the federal accrual adjustment.If you enter
X
in the Accrue state and city tax
field, UltraTax CS subtracts the amount in Prepaid state tax - end year
in the L
screen from the amount in State tax payable - end year
in the L-2
screen. Next, it adds the state accrual adjustment.- If the net adjustment is positive, the amount goes on Schedule L,Other current liabilities.
- If the net adjustment is negative, the amount goes on Schedule LOther current assets.
Book income
UltraTax CS automatically adjusts the amount in
Net income (loss) per books - Force
the Mc/Ms
screen by the accrual adjustment. This happens if there is an X
in Accrue federal income tax
in the TaxAc1
screen.If there is an
X
in the Accrue state and city tax
and Adjust balance sheet and net income per books for state and city tax accrual adjustment
fields in the TaxAc1
screen, UltraTax CS automatically adjusts the net income (loss) per books by the state and city accrual adjustment. 
