Adding owner contributions
JHNC
Member Posts: 2
This question is for U.S. sole proprietorship Wave Accounting:
Would someone please give me a step-by-step set of instructions for making the initial owner's contribution to Wave?
I tried the chat bot Mavis. It leads me to bringing up the equity chart of accounts - Owner Investment / Drawings category page which is apparently only to edit the name, type and currency type [$ USD in my situation]. I do not see a way to add a $ amount to this account from there. I suspect the actual procedure is to do a direct journal entry. Someone please advise. Thank you in advance.
in Using Wave
0
Comments
Yes, you would do a journal entry. On the left-hand side menu, go to Transactions<Accounting. Then at the top right of the screen, you'll click on More>Make a journal entry.
Under description, "Starting balance, cash"
You'll use two lines. The first will be Cash and the second will be Owner's Investment/Drawing. There's no need to change the name because the app will know whether you're making an investment or a drawing based on whether each transaction using that account is a debit or a credit. When you're done saving the journal entry, you can click on Reports and the amount of your drawing will show up under Account Balances>Equity. It will list it as a starting balance.