Hello. I can't seem to find a clear answer to this question from historical search. I am using TurboTax Business 2020 version and using WAVEApps for bookkeeping. My retained earning on book is exactly $559 lower than my TurboTax Retained earning amount. $559 is the 50% of nondeductible meals and entertainment for the 2020 tax year expense. Additionally, my book Profit & Loss shows a net profit that is $559 less than TurboTax net income (taxable income), which is also due to the 50% nondeductible meals and entertainment portion. I would greatly appreciate anyone who can guide me through a proper journal entry with debit coming from which account class (equity, liability, asset, etc.) and credit from which account class so that the book amount matches with TurboTax amount. If this is not the correct path, how would I make this adjustment in TurboTax so that it matches with my book? Please be specific on the TurboTax adjustment too if possible. Thank you in advance.
