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. chart of accounts, . 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 |