 bunch of credits. Unlike when we looked at the accounts receivable where we had debits and credits over here. The balance sheet of account of accounts receivable is a debit normal balance account but we'll have credit transactions, the credit transactions reducing the account balance, the debit transactions increasing the account's balance. On the revenue side it's a credit normal balance account and therefore credits increase, debits would decrease but typically we won't see any debits because revenue only goes up, customers only pay us, we do not typically pay customers. What will the transaction be? It will usually be debiting accounts receivable, crediting revenue if we're in the type of company that invoices clients meaning we do work then we invoice the client and expecting an IOU, expecting money, a check in the mail from the customer in the future. So you'll note that all these transactions related to the increase in revenue are a debit to receivable credit to revenue. The second piece of that being the accounts receivable going down and the cash then being received. If we take a look at the next step then that step the creation of the trial balance. So we have just a small trial balance here because the general ledger can be overwhelming. Clearly if we're looking at a fairly extensive problem or an extensive company this GL will be very large. It could be a very extensive GL and especially if we're looking for an entire year worth of data. We're looking at only a few transactions here if we're talking about a year's worth of data then especially the cash account and the receivable account and say the revenue account could be pages long. So just keep that in mind that we're kind of simplifying the data here but the essence is the same if you look at an extended messy huge general ledger all you're looking for those ending balances when constructing the trial balance we're just pulling those ending balances here in this case those being cash being pulled over from the GL to the trial balance at $13,650 the accounts receivable being pulled over at $780 from the GL to the accounts receivable nothing in supplies nothing in accounts payable nothing in owner's capital at this point and revenue is that credit of $14,430 being pulled over to the trial balance at $14,430 nothing in the wages expense or utilities expense at this time and therefore it's going to be easiest for us to see on the trial balance one of the reasons for pulling these balances to a trial balance is that it's easy to see that the debits then should equal the credits once we pull all this data over then if we were to add up the debits the $13,650 and the $780 we would be equaling the credit of $14,430 and therefore if we were to subtract the two out we would have a zero balance we can also calculate net income easily in this case that just the $14,430 revenue minus expenses us at this point only having revenue of $14,430 and no expenses remember the sequence if you were to add to get a question as how does this happen in order we have the journal entries the journal entries are then posted to the general ledger the general ledger then we're taking these ending balances to create the trial balance the trial balance will then be adjusted to have to adjust the trial balance but will ultimately be used to create the end product of the financial accounting those being the financial statements balance sheet income statement statement of equity objectives we are now able to define the general ledger list components of the general ledger and explain how the general ledger is used