set up chart of accounts not balanced

SOLVED

Hi,  I just entered my chart of accounts, which is verified.  Then I entered the opening balances from my accountant's balance sheet.  The only thing I did not enter was the last listing:  Net income (loss).  I don't know where to put this, or if I need to for a new fiscal year.  But when I try to close my chart of accounts set up guide window, it says my accounts are not balanced.  What should I do? 

Thanks!

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  • 0

    You are better off to request a trial balance from the accountant as of the first day of new year.

    The next income/loss becomes part of the retained earnings which is part of the equity account. The retained is an accumulation of all the net profit/losses since the company was formed - depending on the accountant there can also be other year-end entries made by the accountant to retained earnings which are not necessarily strictly net income/loss related. How much are you out and is this the company's first year? If so you may want to enter the figures from Trial Balance dated the last day of the year and enter the ending balances for all the accounts so that you have a record of the first year's revenues and expenses along with the income stmt and balance sheet (which you already have).

  • 0 in reply to Smith and Co

    The Trial Balance is actually what the Accountant sent me.  But the date is the last day of the previous fiscal year.   On this Trial Balance there is a line for Retained Earnings - Previous year, as well as the net income/loss.  Do I add these together to create the total Retained Earnings?  Or can I just choose the option to record the difference in my retained earnings account?

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  • 0 in reply to Smith and Co

    The Trial Balance is actually what the Accountant sent me.  But the date is the last day of the previous fiscal year.   On this Trial Balance there is a line for Retained Earnings - Previous year, as well as the net income/loss.  Do I add these together to create the total Retained Earnings?  Or can I just choose the option to record the difference in my retained earnings account?

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