QuickBooks is kept in accrual basis.
My beginning 2021 retained earnings is off the amount in capital stock of 72,350. instead of -107,000, it is showing -180,000. Capital stock should be zero as the LLC (2 member) started with negative cash balance (not cashing payroll checks) and no initial investment besides loans to the business. No distributions have ever been made.
My schedule M1 is in balance.
In 2021, there is an additional loss of 61,449. My ending equity for 2021 should be -169888, but in TT is showing as -241675.
Hope this helps to help me with my issue, I just don't know why the capital stock has a beginning balance for 2020 as it just appeared and I just left it out of frustration in figuring it out. Now I need to somehow correct this.
