This movie describes how to find the opening balance equity account balance as of the company start date. It also describes how to record a general journal entry to close the Opening Balance Equity to Retained Earnings or the appropriate equity account for your type of business.
- [Voiceover] As you define opening account balances…QuickBooks updates the opening balance equity account…to keep your debits and credits equal.…Once the setup is complete that account should remain zero.…Zeroing it out is known as closing opening balance equity…to retained earnings and a journal entry does the trick.…Let's start by looking at our trial balance report…in QuickBooks.…Up in the reports menu, point at accountant and taxes…and then choose trial balance.…
We have to change the dates for this report…to the start date.…In the from box I'm gonna click the calendar icon,…click the right arrow and then choose my start date…March 31st.…I'm gonna do the same thing in the two box.…Now that the dates are set, go up to the top right…and click the refresh button.…You wanna find the value…for the opening balance equity account, it's…$68,993.25.…
We have to record a general journal entry…to move that value over into retained earnings.…Let's head to the company menu and…then choose make general journal entries.…That opens up the make general journal entries window.…
- Convert existing data into a QuickBooks format.
- Identify how to create a company file from scratch.
- Recall how to add accounts and subaccounts to a company file.
- Create products and services in QuickBooks.
- Define the opening balance.
- List open transactions.
- Apply changes to sales tax balance.
- Identify how to adjust inventory.
- Modify the closing date.