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    kjneedhelp's Avatar
    kjneedhelp Posts: 1, Reputation: 1
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    #1

    May 8, 2010, 06:02 PM
    WIP entries done on accural basis rather than reversing each month.
    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
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    May 13, 2010, 12:24 AM

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