If you need to transition your HOA's year-to-date (YTD) income and expense balances from an old accounting software system such as Quickbooks, you would typically create journal entries that include the appropriate income and expense account balances and offset those balances against an equity account. An example of such journal entries could look like this:
Transitioning YTD Income Account Information: Debit an equity account (like Retained Earnings) and credit the respective Income Account for the balance it held at the end of the last accounting period.
Example Journal Entry |
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|
| GL Account | Balance |
Debit | Retained Earnings | $X,XXX |
Credit | Income | $X,XXX |
Transitioning YTD Expense Information: Debit the respective Expense Account and credit an equity account (like Retained Earnings) for the balance it held at the end of the last accounting period.
Example Journal Entry |
|
|
| GL Account | Balance |
Debit | Expense | $X,XXX |
Credit | Retained Earnings | $X,XXX |
Disclaimer: Income and expense accounts are meant to reflect the income earned and expenses incurred within a specific fiscal period, and their balances are typically zeroed out at the end of each fiscal year . It's always best to consult with an accountant or CPA when setting up a new accounting system.