Election Book Cooking
Every January, the previous year financials are closed out and updated for reporting in the new year. A few routine things are supposed to be done to update the balance sheet and show the financial health of the Association and its two condos. This shows you the starting surplus or deficit for the year among other things. It doesn't work right if Condo 1A's earnings are incorrectly used to reduce Condo 1's deficit instead of be kept for its own surplus. One of those things is, for each condo, transferring the net income from the previous year to retained earnings for the new year. This may sound complicated, but it is simple arithmetic. For January 2023, you just take the retained earnings from the December 2022 balance sheet and add the total net income for the year to that. It is done separately for Condo 1 and Condo 1A. That becomes the new retained earnings for the balance sheet in 2023. The retained earnings indicate the surplus or deficit each condo is starting the...

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