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View the Retained Earnings account

The Retained Earnings account is an equity account that QuickBooks creates when you start a new company. QuickBooks uses this account to track profits from earlier periods that have not yet been distributed to owners.

If necessary, you or your accountant can make manual postings to the Retained Earnings account, however in most circumstances you should post to a different equity account. Retained Earnings example.

If your fiscal year is January to December and you create a standard balance sheet on December 31st, QuickBooks shows your net income for the year on a line labeled Net Income. In this example, the net income for the year is $124,493.00.

Equity

 

Opening Bal Equity

15,000.00

Owners Draws

-45,750.00

Owners Equity

75,000.00

Retained Earnings

0.00

Net Income

124,493.00

Total Equity

168,743.00

If you then create a standard balance sheet the next day, on January 1st, the same net income from the previous year now appears in your Retained Earnings account, and net income for the new year is 0.00.

Equity

 

Opening Bal Equity

15,000.00

Owners Draws

-45,750.00

Owners Equity

75,000.00

Retained Earnings

124,493.00

Net Income

0.00

Total Equity

168,743.00

Viewing the balance of the Retained Earnings account

Go to the Reports menu, choose Company & Financial, and then click Balance Sheet Standard. The Retained Earnings Account appears in the Equity section of the balance sheet.

Viewing transactions in the Retained Earnings account

To see transactions posted to this account, go to the Company menu and click Chart of Accounts. On the Retained Earnings entry at the bottom click QuickZoom. This displays a QuickReport with the transactions (manually or automatically created) that have been posted to Retained Earnings.

Viewing transaction details for the Retained Earnings account

To see debit, credit, and balance information for Retained Earnings transactions, QuickZoom on the Retained Earnings entry in any report in which it is included. Examples include Balance Sheet Standard and Balance Sheet Detail. When you QuickZoom, QuickBooks displays Retained Earnings information in the Transactions by Account report.

See also

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