I have a client that I believe the retained earnings are not correct. Opened the business in 2017
Net Income for 2017 $3574.72
Net Income for 2018 $10736.27
Owner Draw 2017 $3565.87
Owner Draw 2018 $9690.00
Retained Earnings 2017 $0
Retained Earnings 2018 $8.85, should't this amount be larger?
On 1/1/18 I credited owners draw and debited retained earnings for $3565.87. What should the retained earnings be and how can I correct this? I am not sure what happened.