How do I show estimated taxes (100-ES) for an s-corp in california on the balance sheet?

[GB2021]

Hi,

For an S-corp in california, we are required to pay estimated taxes for the corporation. Even though some of the posts say these should be shown as shareholder distributions, they are not. I paid the s-corp estimated taxes from the Business checking account and now don't understand where to log this so that my balance sheet balances.

Please help!!

Thanks.

[MinhT1]

CA estimated taxes paid on form 100-ES are considered as advance payments of California taxes which will have to be paid in 2021 for the 2020 tax year.

They should be listed on the balance sheet (Schedule L) as an asset on line 6 - Other Current assets and described in the attached statement as CA estimated taxes.

[GB2021]

Thank you so much. I really appreciate your reply. Just a minor question though:

Are assets a part of retained earnings? For example, cash in my account is 13k at end of year, if I add 1k of estimated taxes as assets, it makes my retained earnings as 14k. Is that correct? I also have zero liabilities and it throws my balance sheet out of whack. 

I most probably have to look up how this should work, but any help is appreciated.

Thanks again.

[MinhT1]

No. Assets are not part of your retained earnings.

Your balance sheet may be unbalanced for a number of reasons. If unsure, you should seek the help of an accountant.