Composite Journal entry to correct Opening Retained Income
geoffh
Member Posts: 1
I have a KPMG audited Final Year end closing balances as at 11 Feb 2019. The numbers involved a consolidation and some adjusting entries. My question is how can I show a Retained Income Balance of $27 602.62 as at 12 Feb 2019. I am happy with Assets and Liability balances as at 12 Feb 2019 on my Balance sheet. Other Equity balances are correct i.e. Common Shares and the Owner loan accounts. My year end will be 31 Dec 2019. Is it possible to do some sort of composite journal entry on 11 Feb to fix this. All Income and expenses from 12 Feb belong in the 2019 year end. All Income and Expenses prior to 12 Feb 2019 belong into prior year profits and are calculated in the Retained Income number I want to show.
Please advise
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@geoffh It looks like you reached out through a support ticket on this one and Jake got back to you on Thursday. Yes, while we are no registered accountants and we can certainly guide you through how you can operate Wave, we wouldn't want to coach you on the accounting principles you use. That's definitely territory for a professional accountant.
That being said, Wave actually doesn't close out years. The reconciliation tool in Accounting > Reconciliation allows you to make sure that what you see in Wave matches your bank statement. You can also enter starting balances where you feel it's appropriate: https://support.waveapps.com/hc/en-us/articles/208622796-Starting-balances-What-they-are-and-how-to-enter-them-in-Wave