Start with the beginning retained earnings balance
Add net income for the period
Subtract net loss for the period, if any
Subtract dividends declared and paid
Subtract any prior-period adjustments that reduce retained earnings
Add any prior-period adjustments that increase retained earnings
Use the formula: Beginning Retained Earnings + Net Income – Dividends +/- Adjustments = Ending Retained Earnings
Verify the ending balance on the balance sheet or statement of retained earnings