Yes, I did mean schedule M-2, thanks for the correction. The PPP loan balance should be a positive amount on the balance sheet. It is possible that you reported the PPP loan receipt as income on your books, that would increase your Retained Earnings by the same amount and that would require you to enter it as a negative amount to balance it out. Your 2021 retained earnings on schedule L should be the beginning retained earnings from 2020 plus your book income, less any distributions to shareholders.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
