How do you specify an opening balance for an income or expense
account? What account would you specify for the other side of the
transaction? Would you specify "Equity:Opening Balances" as for
assets and liabilities, or "Equity:Retained Earnings", or some other
equity account? According to
http://www.businesstown.com/accounting/basic-terms.asp,
at the end of the accounting period ((usually end of year),
accountants transfer the balances in income and expense accounts to
retained earnings which reduces the income and expense accounts to
zero. Given this operation, should the opening balance for income and
expenses account only for transactions since the beginning of the year?
