Financial Software

Financial Software Questions? Ask IT Support for Answers ASAP

Ask an Expert,
Get an Answer ASAP!

Financial Software
This answer was rated:

How do I enter an adjustment to retained earnings? When

How do I enter an...
How do I enter an adjustment to retained earnings?

When we completed taxes for 2011, the net loss was "50,100.00". On our opening retained earnings for year end 2012 the balance is "50,000.00"...difference is 100.00

Our accountant suggested we dump it into office supplies.

What does this mean? Do I create a journal entry credit $100.00 retained earnings / debit $100.00 office supplies?

I googled some and understand that a journal entry will not change the 2011 YE P&L net loss/income, but will update the 2012 YE reports to have the correct opening balance in retained earnings.

If a journal entry should be done as above, what do I date the entry for? For Dec 31, 2011? Jan 1, 2012?

Thank you in advance.
Show More
Show Less
Ask Your Own Financial Software Question
Answered in 2 hours by:
6/11/2013
PDtax
PDtax, CPA firm owner
Category: Financial Software
Satisfied Customers: 4,712
Experience: Have used almost every software package available.
Verified

PDtax :

Welcome to the site. I will be helping you today.

PDtax :

Having to adjust end of year to beginning of the next year retained earnings is a pain, and not unheard of. The leading software provider has put out a product that allows this for years.

PDtax :

The good thing about a $100 item is it's small, and considered 'immaterial'. so, a working solution will be fine.

PDtax :

Tax returns should report the same balance sheets from the end of one year to the beginning of another. The suggestion your accountant made, that you just push an adjustment through income for this year (through office supplies) will work, but is part 2 of the solution, because your beginning of year (BOY) balance sheet needs to balance with the end of the prior year (EOY-1).

PDtax :

I would start by fixing the beginning of year balance sheet, with an adjustment made to cash to make it balance. That way, the software will present retained earnings as they should be.

PDtax :

Then, make an adjusting entry for an income statement account, like office supplies, for $100 and fix the cash balance. This will push the change through an income statement account (a nominal account) which will allow this year's income statement to absorb the 'fix'.

PDtax :

Make the entry to retained earnings for 12/31/11. That way, your 1/1/12 balance sheet shows the correct retained earnings balance.

PDtax :

Make the adjusting entry for the $100 on 1/1/12.

PDtax :

The second entry is for cash and office supplies.

PDtax :

Thanks for asking at Just Answer/PDtax. Ask any follow up you have.

Customer:

I need a little clarification on what it means to make an adjustment to cash, please? When creating this je to make an adjustment to cash - what account would I debit $100 & what account would I credit $100?

PDtax :

debit retained earnings 100, credit cash for 100, dated 12/31/11. That will allow your 12/31/11 retained earnings to be correct.

PDtax :

Then, in 2012, debit cash $100 to correct cash to actual and credit office supplies for !00.

Customer:

AHHH... Great thank you!

PDtax
PDtax, CPA firm owner
Category: Financial Software
Satisfied Customers: 4,712
Experience: Have used almost every software package available.
Verified
PDtax and 87 other Financial Software Specialists are ready to help you
Ask your own question now
Customer reply replied 4 years ago

Ok, I'm sorry about this.


 


We don't have a "cash" account, can you define this?


Do I create a new GL account called "cash"?

Cash in bank, checking account, First Federal checking, any of the names for the amount in checking will work.
Ask Your Own Financial Software Question
Ask PDtax Your Own Question
PDtax
PDtax
PDtax, CPA firm owner
Category: Financial Software
Satisfied Customers: 4,712
4,712 Satisfied Customers
Experience: Have used almost every software package available.

PDtax is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Robert M.

Robert M.

Consultant

3,073 satisfied customers

30 yrs. of computer experience in financial and marketing departments.

Doug Millington

Doug Millington

Certified Public Accountant (CPA)

268 satisfied customers

Bachelor of Science Cornell University 1979 - CPA since 1981 - Certified QuickBooks ProAdvisor - 30+ years experience.

AnswerCPA

AnswerCPA

Advisor

175 satisfied customers

QuickBooks Pro Advisor

Leanne Stewart

Leanne Stewart

Quickbooks Pro Certified

153 satisfied customers

QuickBooks certified, in my own business for 7+ years.

David Bennett

David Bennett

Certified QuickBooks ProAdvisor

91 satisfied customers

16+ yrs exper. QuickBooks Specialist, contract accounting technician, consultant & trainer!

jgordosea

jgordosea

Enrolled Agent

80 satisfied customers

Three years as Expert support for Turbotax Ask a Tax Expert, Quickbooks support and use >6 yrs

Tom K

Tom K

Assistant Information Systems Manager

47 satisfied customers

Experienced in the usage of Financial programs such as Quickbooks, Peachtree, and Quicken.

< Previous | Next >

Related Financial Software Questions
I opened my Quicken account but it was gone. What happened?
Hi I opened my Quicken account but it was gone. What happened? … read more
Kris R
Kris R
IT Manager
Computing
2,263 satisfied customers
I do not remember quicken vault password. I do not remember
I do not remember quicken vault password JA: A combination of financial issues and software stuff sounds like a recipe for needing our Expert. You are in the right place. Please tell me more, so we ca… read more
David L.
David L.
Bachelor\u0027s Degree
6 satisfied customers
I am suddenly unable to open my Quicken account that I have
I am suddenly unable to open my Quicken account that I have been using for a number of years. … read more
UranIT
UranIT
IT Consultant, Network and System Admin
Associate Degree
455 satisfied customers
My check registar is not allowing me to enter information.
My check registar is not allowing me to enter information. Is there anyway to fix this problem?… read more
BridgetMartin
BridgetMartin
Consultant
Bachelor\u0027s Degree
32 satisfied customers
Does your sorftware allow for me to file a 990 for a
Does your sorftware allow for me to file a 990 for a 501(c)(4) political organization? … read more
Josh
Josh
It Support Specialist
Associate Degree
5,126 satisfied customers
Have Quicken 2007 for Mac, 16.2.4. Yesterday files would not
Have Quicken 2007 for Mac, 16.2.4. Yesterday files would not backup. Today no files will open, even going back two days to backup … read more
Kris R
Kris R
IT Manager
Computing
2,263 satisfied customers
Using QB Online as our accounting software, how would I post
Using QB Online as our accounting software, how would I post a Life Insurance payment that is paid by the company so that any payouts would not be taxable. Thanks Kevin… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
682 satisfied customers
My quicken 2016 will not update my accounts. It asked for my
it asked for my intuit password ***** said password ***** not correct… read more
Richard
Richard
IT Manager
IT Manager, Consultant
3,208 satisfied customers
When I press the one-step update for my quicken with my
Thanks, ***** ***** press the one-step update for my quicken with my bank, nothing really happens. The processing wheel spins for a moment, but the page to enter my passwords never shows up. I have Qu… read more
Kris R
Kris R
IT Manager
Computing
2,263 satisfied customers
I've been asking for help for days. I need ti talk toi
I've been asking for help for days. I need ti talk toi someone, I'm being locked out from TurboTax because of computer error -- in frustration i … read more
Kris R
Kris R
IT Manager
Computing
2,263 satisfied customers
After going through Quicken/Intuit changes, I apparently
After going through Quicken/Intuit changes, I apparently clicked on the worng data file because entries on transaction report end in 2010. I can't reverse that decision, or find correct data file. … read more
Robert M.
Robert M.
Consultant
Bachelor's Degree
3,073 satisfied customers
There are significant differences in some of my fidelity
there are significant differences in some of my fidelity accounts and the same accounts inQuicken … read more
Robert M.
Robert M.
Consultant
Bachelor's Degree
3,073 satisfied customers
I have purchased Quicken and cannot get signed in. I have
I have purchased Quicken and cannot get signed in. I have created my account and password. Should I have a new icon for the application to get me started? … read more
UranIT
UranIT
IT Consultant, Network and System Admin
Associate Degree
455 satisfied customers
I have a question about the use of quickbooks pro. I
I have a question about the use of quickbooks pro. I mistakenly assigned deposits to a vendor and need to change it … read more
Michael
Michael
CEO
Master\u0027s Degree
72 satisfied customers
How do I reprint a Reconciliation Summary in Quicken?
How do I reprint a Reconciliation Summary in Quicken? Reconciliation worked correctly but the printer messed up the Summary report or I want to reprint it. Thank you.… read more
DanielleCPA
DanielleCPA
Certified Public Accountant
Bachelor's Degree
76 satisfied customers
I use Quicken deluxe 2015. It opens with files except one.
I use Quicken deluxe 2015. It opens with files except one. It is password ***** I have also a couple of bank accounts that it sinks with. The last time I used it, it wanted to sink with an account, bu… read more
Curtis Mathews
Curtis Mathews
President
MBA
0 satisfied customers
May I ask is it mandatory for the tax preparers to provide
May I ask is it mandatory for the tax preparers to provide tax return in the form of software or PDF version is good enough? Any guide can be referred to?Thanks,… read more
PDtax
PDtax
CPA firm owner
4,712 satisfied customers
Ive been using quicken for years on my financial page but
ive been using quicken for years on my financial page but now its not working … read more
David L.
David L.
Bachelor\u0027s Degree
6 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x