Our company's CPA firm has asked me to make AJE for last year, a debit to RE and credit to A/P. It seems that the ending 2018 figure that they used for A/P and the beginning 2019 A/P balance were not the same. I began as an accountant with this company in April of last year, so I am not sure what happened prior to me. I can't find any entries that seem to be made that affects their numbers, but they are different and I need to make my numbers match their numbers. It is not a material amount, just over $1,500. We have many entities that are interrelated, and I have searched entries that might make up the difference, with no luck.
Any suggestions how to accomplish this would be greatly appreciated. I just want to begin 2020 with clean accounts that I can defend going forward.
QuickBooks automatically transfers your annual profits, as calculated in the Profit and Loss, to the Retained Earnings Account at the end of each reporting period, where they add to the previous year’s ending balance.
You can run a Quick Report on the Accounts Payable and filter on paid status to find the entry that caused the difference.
Go to the Company menu, then select Chart of Accounts.
Click your Accounts Payable, then click the dropdown arrow beside Reports.
Filter Journal Entry as the transaction types and Paid Status (Open).
Customize the report to show the rest of the display, so that you'll see all the details from the transaction: Source Name, Name, Account Splits, Debits, and Credits.
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Am I understanding correctly, I do not need to make an adjusting entry at Year End to roll the retained earnings in QuickBooks? When I followed your instructions for looking at the QuickReport, there are no Journal Entries to Accounts Payable, only Bills.