by Maria
(San Diego)
1. Does this also apply for a single member LLC?
Comments for Company Start Up Bookkeeping Question
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I'm setting up my bookkeeping business in Ontario, should I get Errors and Omissions Insurance coverage?
Comments for New business - E&O needed?
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by Pat
In a new business when purchases are made for items to use as display (racks, shelves, etc) should this expense get recorded in balance sheet as startup cost or on P and L side as expense?
Comments for Start Up Costs
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If I want to get into bookkeeping and I do not really know much about the subject where is the best place for me to start?
Comments for Starter Bookkeeper
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by Glenda
(Canada)
Hi, I am wondering what information you need to start a set of books for an existing company that has recently incorporated from a sole proprietorship.
Is the balance in the bank account recorded as retained earnings?
Hi Glenda,
Thank you for your question.
In order to start a set of books for an existing company that has recently incorporated from a sole proprietorship, you would need the balance sheet from the last date of business for the sole proprietorship.
Then you would do one big journal entry to record the ending balances of the sole proprietorship as the beginning balances of the corporation. All the balances are typically journal entried through the Opening Balance Equity account.
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