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March 2, 2023
Question

Year end closing

  • March 2, 2023
  • 1 reply
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On January 1, 2023 I ran a trial balance to determine if year-end 2022 income was closed to retained earnings.  The trail balance indicated that 2022 was closed in the exact net income amount.

On March 1, 2023, I made a adjusting journal entry to reclassify the retained earnings account and another equity account.  When I ran a new trial balance, the retained earnings account did not match the same amount that the January 1, 2023 trial balance indicated.  There was a modest difference. 

 

How can I determine why the retained earnings changed, and reason for the difference.

Thanks,

Chuck

 

1 reply

Rustler
March 2, 2023

RE is not a static account, it is net income so you made some money or lost some and RE changed to reflect that.  Run the RE report as of a certain date, that should help