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Balance sheet

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 L Other 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.

This article applies to:

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