Schedule L Form 1120S
I am currently preparing a company 1120 S but Schedule L does not balance, it's off by $25936.00 because line 24(Retained Earning) that flow from M-2 line 8 is incorrect base upon the company ending balance sheet figures.
On Sch M-2 Line 1 the amount is $12,790.00(12/31/14-Retained Earning)
The company balance sheet is showing $40,774.00(which is 2013 & 2014)
If I subtract the amount on Line 1 above-$12,790.00-since it's included in that $40,774.00 which remain a balance of $27,784.00
I subtracted contribution that the company made in 2015 - 2,048.00. The balance is $$25,936.00 which is the same amount that Sch L is off by. In order to rectify this problem on sch M-2, I subtracted that amount from shareholder's distribution which was $104,878.00, and thus it balance off Sch L; however, I am not too sure about it, so please advise.