Start with beginning retained earnings from the prior period
Add net income for the current period
Subtract net loss for the current period, if applicable
Subtract dividends declared during the period
Subtract stock dividends, if applicable
Add or subtract prior period adjustments, if any
Use the formula: Beginning Retained Earnings + Net Income – Dividends ± Adjustments = Ending Retained Earnings
Report the ending retained earnings in the equity section of the balance sheet