Level 5

Payments

By dummy, I'm going to assume that you created a "Checking" account in QBO, but didn't link it to an actual account. Transaction shave been processed through there, but as there was no balance to reduce it didn't matter. 

 

For the purposes of your equity question, if the owner added their own funds to than it is:

 

Debit to Cash                         $XXX

     Credit to Equity                         $XXX

 

Where XXX is the amount of owner contribution.

 

You can do this in the General Journal option in the settings, gear icon top right. It is a bit accounting geeky, but by increasing equity, you are increasing cash. If you want a detailed explanation on how that works, I can give you that. But otherwise, that is the basic journal entry. 

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