Why are appropriated retained earnings not included in the beginning balance on Schedule M2 of the 1120?

Forum|Forum|6 years ago
June 5, 2020
2 replies
22 views

The input fields show two fields for retained earnings: appropriated and unappropriated. The beginning balance of Retained Earnings on the Schedule M2 in my 1120 shows only the unappropriated amount.

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Best answer by Rox

There was an appropriated amount of retained earnings listed separately on the balance sheet at the beginning of the year. By the end of the year that appropriation had been cancelled and amount was returned to the Retained Earnings, unappropriated account. What I did was to record in Schedule M-2 that Retained Earnings, unappropriated had been increased by the amount of the reserve that was cancelled. I finally got my brain wrapped around that, and it worked. Thank you for your response.

abctax55

Level 15

Does your trial balance have unappropriated Retained Earnings on it?

HumanKind... Be Both

R

RoxAuthorAnswer

Level 4

There was an appropriated amount of retained earnings listed separately on the balance sheet at the beginning of the year. By the end of the year that appropriation had been cancelled and amount was returned to the Retained Earnings, unappropriated account. What I did was to record in Schedule M-2 that Retained Earnings, unappropriated had been increased by the amount of the reserve that was cancelled. I finally got my brain wrapped around that, and it worked. Thank you for your response.

abctax55

Level 15

Not sure I really helped, but YVW.

HumanKind... Be Both

K

Kitty2327

Level 3

I have same problem but how do i clear that amount out?

H

hallieb

Level 2

To clear out the unappropriated amount, go into the balance sheet miscellaneous and there is a spot that says ending retained earnings, and you can type in -1 to override it to be zero. Hope this helps!

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