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BK-CPA
BK-CPA, Certified Public Accountant (CPA)
Category: Finance
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Experience:  Owner of a CPA firm
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I have a manufacturing company that produces bricks. I took

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I have a manufacturing company that produces bricks. I took out a loan using the equipment as collateral to buy out my partners. We were using Navision software and now want to switch to QB premier.
I have set up the COA, Imported customers and vendors all with opening balances. I also imported inventory with quantities but not value.
What i have now is a long term loan, a year end inventory value, a year end bank balance, and a equipment appraisal balance in which the bank used to loan me the money. I am not sure how to post these to quickbooks properly. I keep reading about opening balance equity on Intuit community page. I am not sure if it gets posted there. Any help would be appreciated.
Submitted: 9 months ago.
Category: Finance
Expert:  BK-CPA replied 9 months ago.

Hello and thank you for your question.

You can make a general journal entry in QuickBooks for all of your opening balances. In this case, you'll want to only do it for the ones you have not imported.

If you are recording your beginning balances, you should date the journal entry as of the last day of your most recent fiscal year. The journal entry will be as follows:

-Debit bank accounts for their opening balances (you may wish to record the ending bank balance and any outstanding items from your last bank reconciliation separately so you can continue to reconcile)

-Debit inventory for its opening balance

-Debit equipment for its opening balance

-Credit accumulated depreciation for its opening balance

-Credit long-term liability accounts for their opening balances

-Debit/Credit the beginning balance of equity to balance your journal entry so that total debits equal total credits (depending on whether this is a corporation, LLC, sole proprietorship, etc., the equity accounts will have different names: for example, you may have capital stock, additional paid-in capital, and retained earnings accounts in the case of a corporation)

If you have any additional asset accounts, you would debit them in the above entry. If you had any additional liability accounts, you would credit them in the above entry. The last line(s) of the entry will be to equity to balance.

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