What is the beginning retained earnings in 2013? Subtract out the $22,331.24 loss and retained earnings has now declined to $11593.59. Your verbiage is confusing. All income and expense accounts close out to retained earning on the last day of the year. The NEW retained earning balance will show on your BALANCE SHEET and in your TRIAL BALANCE for one full year until the close of the next year. The INCOME STATEMENT will only show the Income, Cost of Sales and Expenses for ONE YEAR at a time. At the end of the year it is closed into RETAINED EARNINGS and all Income Statement accounts are Zeroed out. With this information, is it still incorrect?
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