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Chapter 16. Recording Owners' Equity > Accounting for Equity

Accounting for Equity

Most of the changes to your equity accounts happen in the background—automatically and without intervention from you. The Opening Balance Equity Account (OBEA), for example, is adjusted when you make entries that affect the opening balances of other accounts. For example, if you set up a new account to reflect your company's ownership of a $2,000 computer, the transaction is recorded like this:

 DebitCredit
Fixed Asset/Computer$2,000.00 
Opening Balance Equity Account $2,000.00



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