S-Corp SEP Payment made in 2018 for 2017

[aperri]

I made a SEP payment from the Corporation to my SEP account for 2017. The Contribution on my Turbo Tax software is now causing me to have a Negative Retained earning of -$43k. It was positive before I enter the $50k contribution. I realize now that I should have paid myself less during 2017, so I would not have a negative retained earnings. How do I fix my balance sheet, which shows the S corp out of balance by $60k (17k ending Cash). Do I make an adjusting entry in the Other liabilities area or the Retained Earnings area? Help!

[CaronM]

Since the contribution wasn't paid until 2018, it should be considered a liability in 2017. Enter it on line 17.

[aperri]

Can i list it on line 21, Other Liabilities with an explanation?

[CaronM]

No, it should be on the short term liabilities line with an explanation, not the long term liability line.