At the recomendation of our accountatnt we created a new set of books for 2019 for our already existing LLC, at first I was confused by the account (Opening Account Equity) but after some research online I finally figured out it's purpose and function. I have the account balanced down to the profit/loss (Retained Earnings) from the previous year as the ballence in OAE. In our case we lost (xxxx.xx) in our first (sart-up) year so we are showing that amount -xxxx.xx as a balance in OAE that obviously has not been closed out to Retained Earnings. I statrted making a journal entry to transfer this loss to RE but QiuckBooks gave me a waning that RE should be an auto entry from an equity transaction and was I sure I wanted to proceed? I didn't end up making the journal entry and have the following questions,
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Many Thanks! Too late to addres the issue of setting up new books but you have helped me clear up all the issues I inquired about. We did have the equity structure that you recomended already in place and I have NO PLANS to start a new set of books for 2020, if instructed I will indeed be changing accountants. Thanks again! Tate9119