Equipment in Balance Sheet
Trying out Wave and brushing up on accrual basis accounting... I had a balance sheet where Cash and Bank + To Be Received - To Be Paid Out = 0. When I added an expense for purchasing a piece of equipment, the bank account reduced properly and the equipment shows as a long-term asset. However, the top line of the balance sheet is now negative by that amount. If the credit to cash and bank equals the debit to an asset account, equipment, why does the balance sheet change? What am I missing?