Brand New Asset, Journal Entry Question

[onemore4gsus]

A church I'm working for received a sum of money that they used to open a money market account, not in the bank they have their main checking in. That's a good thing, but I'm stumped about how to craft the Journal Entry to open the account.

I get that I need to add an Asset account to the Chart of Accounts and debit it for the opening balance.

But what account do I credit? I'm stuck. Thanks, all!

[NeilZ]

A church I'm working for received a sum of money that they used to open a money market account, not in the bank they have their main checking in. That's a good thing, but I'm stumped about how to craft the Journal Entry to open the account.

I get that I need to add an Asset account to the Chart of Accounts and debit it for the opening balance.

But what account do I credit? I'm stuck. Thanks, all!

Its a donation, right?? You would have to use or create an income account to account for that money coming in.

[onemore4gsus]

Hi, Neil. Kind of. It's a settlement, but I believe your answer is still applicable.

Thank you for taking the time to reply and help me out. Creating a coordinating income account makes perfect sense.

[NeilZ]

It doesn't have to be specific for that account, it could be called Miscellaneous Income, which covers most anything other than offerings.

[onemore4gsus]

Thanks, Neil. Great advice, since I can use it for future deposits not "transferred."