Change asset to equity account

[cbrown]

Is there a reasonable way to change a misclassified asset account to an equity account?

[NeilZ]

Is there a reasonable way to change a misclassified asset account to an equity account?

Well .. a lot depends on where this account closes. Does it close to the standard unrestricted Net Asset equity/fund balance account? Are there any funds listed under the account?

Its not as easy as just changing the account number or type.

[cbrown]

Looks like all our income and expense accounts close to unrestricted net assets. The funds in question are 1000-level asset funds and they don't appear to have a close-to account. I hope I am on the correct rabbet trail, here. I'm pretty new to this and don't have an accounting background.I've been reading the PC manual and bought a couple books, but it's a complex and slow process. My term doesn't start until January 1st so I'm "playing in the sandbox" in PC 11.55 I loaded on my home computer. I then restore a backup each day to my computer so I can work with current data.

[NeilZ]

Looks like all our income and expense accounts close to unrestricted net assets. The funds in question are 1000-level asset funds and they don't appear to have a close-to account. I hope I am on the correct rabbet trail, here. I'm pretty new to this and don't have an accounting background.I've been reading the PC manual and bought a couple books, but it's a complex and slow process. My term doesn't start until January 1st so I'm "playing in the sandbox" in PC 11.55 I loaded on my home computer. I then restore a backup each day to my computer so I can work with current data.

OK .. so the account closes to the unrestricted net assets, gret. So exactly what does this 'asset' account contain? What were the funds designated for? Why do you feel this should be another equity/fund balance/net assets account?

Again, if you can give me as much information as possible it would help.

[cbrown]

They were five or six permanently restricted funds in this category. From my reading it appears that they should be contained in the equity account list, am I mistaken?

[NeilZ]

They were five or six permanently restricted funds in this category. From my reading it appears that they should be contained in the equity account list, am I mistaken?

Um ... wow ... they should NOT have been broken out as separate assets. You're right, they should have been entered as permanently restricted.

However, are they assets that cannot be touched at all? You cannot access them for any reason? If you CAN, then they are temporarily restricted.

That said, what are these assets? Buildings, stock, mutual funds ??

[cbrown]

They are permanently restricted. Only the interest can be touched. The corpus, or main part of the gift, cannot be used.

[cbrown]

Forgot to answer the second half of your post.......they are investments .....mutual funds, monetary gifts, etc. All cash-based.