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Level 2

Should the opening balances of bank accounts be in equity?

I started a new QB file on 7/1/2018. Should the opening balances of bank accounts be in equity? It went to Opening Balance Equity (OBE) but I moved it to Shareholder Equity (an account I created) where all other equity activity ends up each year. 

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Community Champion

Should the opening balances of bank accounts be in equity?

As long as it is zero at end of first year, moving any remaining balance in OBE to any type of owner equity is appropriate. Shareholder equity woulld apply to a S corp. An LLC has members and a sole proprietor is just an owner

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