The Mississippi Balance Sheet Per Books is a required schedule for Mississippi corporate income tax returns that shows a corporation’s assets, liabilities, and shareholders’ equity at both the beginning and end of the tax year, as recorded in the company’s financial books and records. It includes Schedule L for the balance sheet itself, Schedule M-1 to reconcile the net income per books with the federal taxable income, and Schedule M-2 to analyze changes in unappropriated retained earnings during the year. Corporations use this form to provide the Mississippi Department of Revenue with a clear picture of their financial position per their accounting records, helping to verify the accuracy of reported income and ensure compliance with Mississippi tax rules. The form must be completed using amounts from the company’s books, not adjusted tax basis, and any items that require detail must have attached statements. It applies to C corporations filing Mississippi Form 84-110 or related returns, and some corporations may need to file Schedule M-3 instead of M-1 if they meet certain size thresholds.
How to Complete Mississippi Balance Sheet Per Books
General Top Section Information
FEIN
Enter the corporation’s Federal Employer Identification Number at the top of the form. This identifies the corporation with the Mississippi return.
Schedule L – Balance Sheets Per Books
Complete Schedule L by showing amounts for the beginning of the tax year in columns A and B, and end of tax year amounts in columns C and D. Use your company’s books and records for all entries. Attach statements for any line that requires itemization.
Assets Section
Line 1: Cash
Report the total cash balance from your books in columns A/B for the beginning of the year and columns C/D for the end of the year. Include cash on hand and in bank accounts.
Line 2a: Trade Notes And Accounts Receivable
In columns A/B and C/D, enter the total trade notes receivable and accounts receivable from customers for goods or services sold.
Line 2b: Less Allowance For Bad Debts
Subtract the allowance for doubtful accounts or bad debts from the amount on line 2a. Show the net amount in the appropriate columns.
Line 3: Inventories
Enter the total value of inventories as shown on your books at the beginning and end of the year.
Line 4: U.S. Government Obligations
Report U.S. Treasury bills, bonds, and other direct obligations of the U.S. government from your books.
Line 5: Tax-Exempt Securities
List securities that are tax exempt, such as certain municipal bonds. Follow the specific instructions for what qualifies.
Line 6: Other Current Assets (Attach Statement)
Include all other assets expected to be converted to cash within one year. Attach a detailed statement listing each item.
Line 7: Loans To Shareholders
Report amounts loaned to shareholders or related parties.
Line 8: Mortgage And Real Estate Loans
Enter mortgage loans and other loans secured by real estate.
Line 9: Other Investments (Attach Statement)
List investments in stocks, bonds, or other securities not reported elsewhere. Attach a statement with details.
Line 10a: Buildings And Other Depreciable Assets
Report the original cost of buildings, machinery, equipment, and other depreciable property.
Line 10b: Less Accumulated Depreciation
Subtract accumulated depreciation for the assets on line 10a.
Line 11a: Depletable Assets
Enter the cost of natural resource properties subject to depletion.
Line 11b: Less Accumulated Depletion
Subtract the accumulated depletion for line 11a assets.
Line 12: Land (Net Of Any Amortization)
Report the value of land, net of any amortization if applicable.
Line 13a: Intangible Assets (Amortizable Only)
List patents, copyrights, and other amortizable intangibles.
Line 13b: Less Accumulated Amortization
Subtract accumulated amortization for line 13a assets.
Line 14: Other Assets (Attach Statement)
Include all other assets not listed above. Attach a detailed statement.
Line 15: Total Assets
Add all asset amounts from lines 1 through 14. The total should balance with total liabilities and equity on line 28.
Liabilities And Shareholders’ Equity Section
Line 16: Accounts Payable
Report amounts owed to suppliers and others for goods or services.
Line 17: Mortgages, Notes, Bonds Payable In Less Than 1 Year
List debt obligations due within the next 12 months.
Line 18: Other Current Liabilities (Attach Statement)
Include accrued expenses, taxes payable, and other short term liabilities. Attach a statement.
Line 19: Loans From Shareholders
Report amounts borrowed from shareholders.
Line 20: Mortgages, Notes, Bonds Payable In 1 Year Or More
List long term debt obligations due after 12 months.
Line 21: Other Liabilities (Attach Statement)
Include all other liabilities. Attach a detailed statement.
Line 22a: Capital Stock: Preferred Stock
Report the par or stated value of preferred stock issued.
Line 22b: Common Stock
Report the par or stated value of common stock issued.
Line 23: Additional Paid-In Capital
Enter amounts received for stock above par value.
Line 24: Retained Earnings—Appropriated (Attach Statement)
Report retained earnings set aside for specific purposes. Attach a statement.
Line 25: Retained Earnings—Unappropriated
Enter unappropriated retained earnings available for general use.
Line 26: Adjustments To Shareholders’ Equity (Attach Statement)
Include other comprehensive income or equity adjustments. Attach a statement.
Line 27: Less Cost Of Treasury Stock
Subtract the cost of company stock repurchased and held in treasury.
Line 28: Total Liabilities And Shareholders’ Equity
Add all liabilities and equity amounts from lines 16 through 27. This total must equal the total assets on line 15.
Schedule M-1, Reconciliation Of Income (Loss) Per Books With Federal Income Per Return
Use Schedule M-1 to reconcile your book income with federal taxable income. Some corporations may need to complete Schedule M-3 instead.
Line 1: Net Income (Loss) Per Books
Enter the corporation’s net income or loss from your financial books and records.
Line 2: Federal Income Tax Per Books
Report federal income tax expense as recorded on the books.
Line 3: Excess Of Capital Losses Over Capital Gains
Enter any excess capital losses over capital gains for the year.
Line 4: Income Subject To Tax Not Recorded On Books This Year (Itemize)
List income that is taxable but was not included in book income, such as installment sales or other items. Itemize each type.
Line 5a: Expenses Recorded On Books This Year Not Deducted On This Return (Depreciation)
Enter the difference in depreciation methods between books and tax.
Line 5b: Charitable Contributions
Report charitable contributions recorded on books but limited for tax purposes.
Line 5c: Travel And Entertainment
Enter travel and entertainment expenses on books that are not fully deductible for tax.
Line 6: Add Lines 1 Through 5
Total lines 1 through 5 to get book income adjusted for tax differences.
Line 7: Income Recorded On Books This Year Not Included On This Return (Tax-Exempt Interest)
Report tax exempt interest income from books that is not taxable.
Line 8a: Deductions On This Return Not Charged Against Book Income This Year (Depreciation)
Enter tax depreciation that exceeds book depreciation.
Line 8b: Charitable Contributions
Report additional charitable deductions allowed on the tax return beyond book expense.
Line 9: Add Lines 7 And 8
Total lines 7 and 8 for nontaxable income and extra deductions.
Line 10: Income (Page 1, Line 28) Line 6 Less Line 9
Subtract line 9 from line 6. This should equal taxable income on page 1, line 28.
Schedule M-2, Analysis Of Unappropriated Retained Earnings Per Books (Line 25, Schedule L)
Schedule M-2 tracks changes in unappropriated retained earnings during the tax year.
Line 1: Balance At Beginning Of Year
Enter the beginning balance of unappropriated retained earnings from your books.
Line 2: Net Income (Loss) Per Books
Report the net income or loss per books for the year.
Line 3: Other Increases (Itemize)
List other additions to retained earnings, such as prior period adjustments. Itemize each.
Line 4: Add Lines 1, 2, And 3
Total lines 1, 2, and 3 to get retained earnings before distributions.
Line 5a: Distributions: Cash
Report cash dividends or distributions to shareholders.
Line 5b: Stock
Report stock dividends distributed.
Line 5c: Property
Report distributions of property to shareholders.
Line 6: Other Decreases (Itemize)
List other reductions, such as treasury stock purchases. Itemize each.
Line 7: Add Lines 5 And 6
Total all distributions and decreases from lines 5 and 6.
Line 8: Balance At End Of Year (Line 4 Less Line 7)
Subtract line 7 from line 4. This ending balance should match line 25 of Schedule L.