JE's to books after annual 1065 and K-1s are filed
I am a tax preparer using ProSeries. Clients often maintain their own Quickbooks Online and provide me their final annual Balance Sheet and Profit & Loss statements to use in creating the tax return for their small businesses. There are no 'off-book' items to consider, just these reports from their accounting software, which I do not have access to. I just created a 1065 for a dual member LLC, each received a K-1 which allocated income and expenses based on their ownership percentages of 51% to Partner A and 49% to Partner B.
Client is asking if they need to make journal entries to adjust their books for info from their respective K-1's so that their individual Equity Accounts on their Balance Sheet are adjusted for the allocation of non-deductible expenses (shown on K-1, line 18, code C) of Partner A=$155 and Partner B=$149.
Do they need to make these entries in QBO and if so, what is the entry?
