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Business & farm
You should have reported your PPP loan forgiven amount on line 16(b) of schedule K as Other Tax-Exempt Income. That will make it show on line 3 of schedule M-2 which will impact your retained earnings on your balance sheet. That may resolve your issue.
You should set up a liability account for your PPP loan and the payments against it would be applied to that account. The interest portion of each payment would go to interest expense though.
[Edited 3/24/22 at 6:03 PM PST]
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March 24, 2022
5:04 PM