WIP adjustments have been entered on an acrual basis (with many revisions & errors). I have reversed the two entries for this year 2010 (Jan & Feb entries only) to enter the actual figures for the month then reverse in the next month. I have a beginning balance in the asset account (costs in excess to billings) and the liabilility account (billings in excess to costs). Will I need to reverse all prior year/period adjustments or can I just adjust my retained earnings account for 2010?

Example: Beginning balances Jan 1, 2010.
Costs in excess to billings: 6,607.20
Billings in excess to costs: (175,280.62)

Thanks,
KJ

I do not at all understand what you are doing. What are you using this WIP account for? And why are you reversing entries?