ILLUSTRATION OF WORKSHEET WITH BEGINNING RETAINED EARNINGS

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In this illustration, there is a beginning retained earnings balance equivalent to the prior year's ending retained earnings.  The beginning retained earnings is included in the trial balance and ultimately extended to the retained earnings credit column.  The resulting subtotals in the retained earnings columns reflect beginning retained earnings, dividends, and income.  Therefore, the "balancing amount" in the green shaded box reflects the ending retained earnings, and is also included in the balance sheet credit column.