But that has all changed. Venice is now more than just a beach town, more than just a tourist attraction. Venice is a brand. Or as Ernest, a man I met outside the Oakwood Community Center (he smoked a hand-rolled cigarette and declined to give me his last name), puts it: This used to be a community.
The retained earnings general ledger account is adjusted every time a journal entry is made to a revenue or expense account. Retained Earnings. Retained earnings are reported at the end of an accounting period as the accumulated amount of a company's prior earnings, net of dividends. They can show a positive earnings accumulation or can turn negative and have a deficit if a current period's net loss exceeds the period's beginning retained earnings.
Q: How do you record retained earnings in the journal? A: Earnings means profits and retained earnings is all the net profits one accumulated. Also known as accumulated profit. Anyway, I think what you are referring to is the transfer of net profit at the end of the year to retained earnings. If so, these are the journal entries... If you made a profit for the year, the profit and loss account would have a credit balance. So you: Dr Profit and loss account. Cr Retained earnings. If, however, the business made a loss for the year, the profit and loss account would have a debit balance.