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Simplify payday and set payroll to run automatically on QuickBooks. Explore QuickBooks Payroll

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qbteachmt
Level 15

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Yes, they are Prior Year Equity = Retained Earnings is right. This is not New Year expense. You reported it for the Prior year.

 

You Make Deposit to checking for Equity = money in the bank per the statement.

You enter Uncashed Checks as Equity, because last year, they were expense. This year, they are Equity. You Backdate them and you can list expense or equity, because it's the Same, now, in the new year. Last Year's expenses are rolled into this year's equity.

 

The Banking date is your Spending Date, not the Cleared date, for the expense. That is Prior Equity, now.

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