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?
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