If you change the account types to be the correct type, there's nothing more to do (at least, there will be no need to enter a Journal) since the account type change alone will shift the activity from the balance sheet to the P&L.
In order to change the account type of a parent or child account, you must first make the accounts unrelated. Do this by editing each sub-account and remove the parent account reference, so that all the accounts are parent accounts. Then change the type for each account. Then edit the accounts that were sub-accounts to re-establish the relationship with the parent account.
