Retained Earnings

This account reconciliation is an Equity account type and a List reconciliation type. This type of reconciliation allows you to make a list of the amounts that make up the account balance.

The Description shown above tells you that there really should be very little activity in this account. Just the one time adjustment made by Corporate at the end of the year. Certainly no entries should be posted by the division accounting staff unless there are specific directions from corporate. There are also instructions to the Division Controller about her responsibilities - review the account and confirm any activity with the Corporate Controller's Office.

Below is the reconciliation for this account for the month ended 12/31/2010.

The reconciliation has been Prepared, Approved and Reviewed as noted by the appropriate staff members. Below is the Reconciling Item for the 2002 Retained Earnings entry.

This item has an Open Date of 12/31/2002. This is entry recorded by the corporate accounting department as part of the post closing entries for 2002. This particular reconciling item would probably never clear from the account during the life of the company.

The month end report is shown here:

This particular account is reconciled with no Unidentified Difference. You can see that a Comment has been added specifically stating that there will be an entry made for the year ended 12/31/2010 but it will probably not be made until March.

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