• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 16. Recording Owners' Equity > Managing Retained Earnings

Managing Retained Earnings

Retained Earnings represents the accumulated net earnings of your company. The amount in this account changes at the end of each year. The total income less the total expenses for the year (net income) flows into this account. QuickBooks automatically places the net income in the Opening Balance Equity account; then it transfers this amount to your retained earnings account at year-end. How do you find out the amounts in your retained earnings account? Open the Chart of Accounts (Ctrl+A) and double-click Retained Earnings; QuickBooks advises you that no register is associated with this account. If you want to monitor the activity in your Retained Earnings account, you have to play a trick on QuickBooks and manipulate your account to see what adds up to the total in that account.

Manage Retained Earnings

Press Ctrl+A to open your Chart of Accounts.

Click Retained Earnings to select the account.

Press Ctrl+E to edit the account.

Change the name of the account.

Click OK.

Press Ctrl+N to create a new account.

Select Equity for the account type.

Enter Retained Earnings as the account name.

Enter a beginning balance.

Click OK.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint