Updating Owners Equity + Interest Expense
Hi I have a 2 part question,
1. Since Wave accounting does not close accounts, and use accounts like income summary, how do we properly update Owners Equity? Without making the December Profit and Loss account wrong, which happens if you use closing accounts?
2. A separate issue, how do we categorizes Interest Expense? Since it is not an operating Expense, I cannot create in Chart of Accounts in Uncategorized Expense, it has to be Operating, COGS, Payment Processing or Payroll Expense. I don't think that Interest Expense is in COGS or the other categories either?
Thanks in advance