How Do I convert Owner's Draw at the end of the year for a sole proprietorship.
This is my first year keeping books in
QB. I am trying to understand how to convert Owner's Draw at the end
of the year for a sole proprietorship. I am using QB Pro 2014 with
Enhanced Payroll. As I understood it, I should make a general Journal
entry at the end of the year transferring owners Draw to Owners
Equity. I was starting to do that, when I realized that QB had
already made an entry on 12/31/14 debiting Owner's Equity (is that
the correct use of "debit"? It made it a positive amount).
Owner's Draw is a negative amount, which makes sense. But what
doesn't make sense is that the amount in Owner's Equity does not
equal the amount in Owner's Draw on 12/31/14. It's $3,000 off. Can
anyone help me here?
How Do I convert Owner's Draw at the end of the year for a sole proprietorship.
I just attempted to close out as you had instructed and QB Desktop gives me a warning not to do this as this is the retained earnings account (Equity Account) that QB's loads retained earnings into at the end of each year.
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