The balance in Retained Earnings at the end of the period is created by closing entries.

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The balance in Retained Earnings at the end of the period is created by closing entries, which transfer the year's net income or loss to the Retained Earnings account and close all temporary revenue, expense, and dividend accounts. This results in a final balance in Retained Earnings that reflects the company's cumulative profits or losses over time.

The Balance in Retained Earnings at the End of the Period