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Jun 29, 2024 6:42 PM UTC
Solved

business started in 2019 with $1000 of owner's equity and that has never been closed into retained earnings so is it too late or can I do it this year

The business started in 2021 with $1000 of owner's equity and that has never been closed into retained earnings so is it too late or can I do it this year?

BigRedConsulting
Jul 1, 2024 4:04 PM UTC

Generally, only current earnings become retained earnings. Owner's equity isn't normally closed into retained earnings, so there may not be anything to do.

 

2 replies

BigRedConsulting
Jul 1, 2024 4:04 PM UTC

Generally, only current earnings become retained earnings. Owner's equity isn't normally closed into retained earnings, so there may not be anything to do.

 

Jul 1, 2024 4:07 PM UTC

Thank you for answering!