One of my clients purchased a vehicle for business use and wants to take Section 179 on it. Since section 179 is subject to income and this is my first time preparing a 1120s, I consulted with the CPA. He advised me to record a journal entry in our books to show the amount of sect.179 we were going to take so that our tax software would pick it up. In addition, since sect.179 would reduce the basis of the vehicle I would need to calculate depreciation for the year using this new basis. So just to give you the numbers:
Cost of vehicle-$43,802
Elected Section 179- $9,500
He wants me to record in our books:
Depn 9500
Accum 9500
AND
Depn 858
Accum depn 858 [(original cost-9500) using hy convention over 5 years]

Then, I completed Form 4562 for the 179 and now the balance sheet is out of balance by a couple thousands...

I know this is not right!! Someone please help me because I have no one else who can!

I don't see how the tax treatment would have affected your balance sheet, if you are using double entry for every transaction. You depreciation entries are fine. I am curious how you adjust the basis.