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How do I make post-closing adjustments to the prior year?

April 26, 2017adjustments post-closing prior year

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How do I make post-closing adjustments to the prior year?

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After the year is closed, adjustments to the prior year can only be made to balance sheet accounts (i.e., asset, liability, and equity accounts). Income and expense accounts from the prior year are zeroed out and rolled into retained earnings when the year is closed, so can’t be adjusted.