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    littlemoney08's Avatar
    littlemoney08 Posts: 9, Reputation: 1
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    #1

    Sep 23, 2009, 12:31 PM
    Where does retained earnings belong on the inome statement?
    Does retained earnings go under revenue in the income statement?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Sep 23, 2009, 07:19 PM

    When closing the books at the end of the year, the net income from the income statement is added to retained earnings. But retained earning isn't "a revenue." And it doesn't go on the income statement.
    Addi38's Avatar
    Addi38 Posts: 20, Reputation: 1
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    #3

    Sep 23, 2009, 09:24 PM

    It's a B/S account where your nominal accounts are closed to at the end of the year. It represents Net Income not distributed by the company hence the term 'Retained Earnings.'
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