Identify which of the following opening adjusting entries should be used when setting up in QuickBooks an existing company with opening balances:
A)Debit: Capital Stock,Credit: Opening Balance Equity
B)Debit: Opening Balance Equity,Credit: Capital Stock
C)Debit: Accounts Receivable,Credit: Capital Stock
D)Debit: Accounts Payable,Credit: Opening Balance Equity

Question

Quizplus · Accepted Answer

When setting up an existing company in QuickBooks with opening balances, the Opening Balance Equity account is used to offset the initial balances entered for assets and liabilities. Therefore, when recording the capital stock, you would debit Opening Balance Equity and credit Capital Stock.

Identify Which of the Following Opening Adjusting Entries Should Be