[Lovetolearn]

I understand that the temporary accounts get closed out at the end of the accounting cycle.
My question is what does the balance sheet look like in the middle of your accounting cycle? Do you see the profit/loss from previous month?


Profit/loss shows up in your income summary account which is closed out to Retained Earnings on the Balance Sheet.


My accounting period is a calendar year Jan-Dec.


I check my Balance Sheet on March 1st, 20__.
I made a profit of $2000.00 in February.
Will my Balance Sheet reflect my profit in the Capital account or will it not show up until I close accounts? (pretend I am hand writing all my journal entries, adjusting entries, etc. A computer program is not performing these functions for me)


Is the Retained Earnings account ever closed out? Or does it accumulate totals?

[paraclete]

Retained earnings is an accumulation and is part of the capital accounts of an organisation. You should try not to look at the accounts in isolation