 In this presentation, we're going to enter beginning balances for our other accounts. In other words, we've entered the beginning balances related to the job costing accounts. Now we're going to enter the other balances for the purposes of our practice problem. Let's get into it. We're going to be entering the beginning balances to do so. Let's go back on over to our Excel worksheet to consider where we are at. I'm in the example zero tab. So we're going to go back up top. And I'm going to say that these are going to be our beginning balances. Now we've entered the balances for the job costing information. I'd like to get some other numbers in there just so when we go over to the balance sheet, we have a little bit more activity in it and we can consider some more kind of accounts as we go into it and so we don't have a negative cash account. So we're going to want the beginning balances at this 300,000, the 510 for the equipment. We'll put accumulated depreciation in there, accounts payable, and then a capital or retained earnings account. Let's see what we have in our accounts so far and we'll just do this very quickly with a journal entry. It'll be easy. It'll be painless here, hopefully relatively painless. So we're going to go back on over. Let's go on down to our reports. Let's open up our favorite two reports, that being the balance sheet and the income statement. So I'm going to open up the balance sheet first. It's kind of like my favorite. I think it's the favorite one. So I'm going to go back up top. And we entered this and we want to be as of the beginning of December or the beginning of 2020. So this would actually be fine if I go down. I'm in 2020. You can see that what we have is the checking account at the 83,000 and the equity account at the 83,000 because the retained earnings or the income rolled over into it. In other words, if we went back up top and made this as of 2019, let's make it 123119 to 123119 and then run that report. All the difference is that now it's in the equity section, but in income, then it's going to roll into the retained earnings. And that's where we want it. So let's go back to 2020, 2020, 2020 and then run that report. Now it is in retained earnings. So that's fine. Okay. Now let's go ahead and right click on this tab up top and duplicate it. I'm going to go to the tab up top, right click on it, then duplicate it. So we're going to have the balance sheet to the right and then the other tab to the left where we can do stuff. Let's go on down to the reports again, open up to the other favorite reports that being the P and L, the profit and loss, the income statement. Not as relevant to what we're doing here, but we just want to consider the income statement as we've entered the data into it thus far. So we're going to go into that P and L, that profit and loss, that income statement. We're going to be looking at the income statement for 2020, the point being that there's nothing in there in 2020 because we entered the data prior to this time period. So if we were to look at the prior time period, 2019, and I'm just going to say 123119, then we're going to see the data. But the point is that this all rolled in to the equity section for the start of our problem, which is going to be the 2020. I'm going to right click on this tab again up top, right click on the tab, then duplicate that tab. So now we have the balance sheet, then we have the income statement, then we have the tab to the left where we can do stuff. One more report I want to take a look at, useful report that being the trial balance reports. This will give us all the information in kind of like one spot. It's all the way at the bottom under like the accounting section. So you'd have to go all the way down here, or you could just basically type in trial balance. So it's going to be way down here, so here. So usually when I go into it, I just type it in there. And I just say I want to find the trial balance, that's the one. And same process here, note that if I make this for 2019, 123119, 123119, then we're going to get a bunch of detail here. We're going to get a bunch of information. But it's really just the balance sheet and then the income statement. So the checking account. And then we've got the income statement accounts, nothing in equity because that is the equity accounts. Then if I pull this over to 2020, let's bring this on up to 2020. And then say run that report. This is all we have. And this is the nice, if you're used to debits and credits, this is the easiest way to see it because then you just see the checking account, the retained earnings. This is what we have right now and the bare bones level. You can also see it on the balance sheet, but you have a lot more subtotals in it. So all I want, this is where we, where we are at. And this is on here. This is where we want to be. Okay. So then how are we going to get from where we're at to where we want to be? Well, if we take where we, where we want to be being, these are the beginning numbers. I just pulled them down and we compare that to where we are at, which is the 83,000 cash and a negative and then the, and then the capital or retained earnings. And we take the difference between the two. We can then think of this as just big, one big journal entry that we can enter for the rest of the beginning balances. So that's what I'm going to do now. I'm just going to enter one journal entry for the rest of the beginning balances, which will be this column. And then we should be ending then at our beginning balances here. So we have something that kind of, you know, it gives us something to work with more than just the job costing numbers. Okay. So let's do that. It won't be too difficult. It's going to be easy. We're going to go back on over here. I'm going to right click on this tab again up top. I'm going to duplicate this tab. So we got these three reports open. We're going to duplicate that tab. So we got the balance sheet, the PNL, then the trial balance. And then I'm going to go to the tab to the left where we're actually going to enter the journal entries. So now we're going to be entering a journal entry. If we go to the new button up top, we're looking for a journal entry. So we're going to just go to the other item over here, journal entry. So we will enter the actual journal entry using debits and credits. If you're not familiar or too used to debits and credits, it's okay. It should still be okay. We'll put this in here and we're going to say then that if we compare this out, we're just going to say then the cash, which is the checking account. So checking account that we had to set up is going to be this one. And I'm going to make this as a 123119, by the way, in case I mentioned that. It's going to be 83,000. So I'll pay 83,000 debit. No, it's not. Is that right? No, three hundred and eighty three thousand three, eight, three, three thousand. And we could put a description, which would be like beginning balance says and then no name. And then the second account is going to be all the way down here. Factory equipment, factory equipment. So let's put that in fact. Do we have factory equipment here? Let's see. It would be a I don't see it. I'm going to put factory equipment. I'm going to create an account as we go, factory. I want to say factory equipment and then tab. It's going to ask me to set it up. This is going to be a fixed assets type of account. So we're going to make it a fixed asset type of account right there. And then I'll keep it. This is going to be fixed assets. We're going to make it fixed assets equipment or something like that. I'll just call it other factory equipment that looks good. That looks good. Let's save it there. We're going to save that. And we need that to be for the amount of five hundred and ten thousand. So this is going to be five hundred and ten thousand. All right, next item next item is going to be the accumulated depreciation. So we'll make it accumulated depreciation account. So let's go back on over here. So accumulated depreciation tab. And then I'm going to set that up. That's going to be a fixed assets type of account as well. So we're going to say fixed assets type of account. And then again, I'll put this all the way at the bottom to the other other fixed asset type of account, accumulated depreciation. Hopefully I spelled that right if I didn't, you know, I'm sorry. And then we're going to say this is going to be a credit for the one hundred and fifty three thousand one fifty three thousand. All right, what else we got? Let's see what the next one is. This is fun. We're going to say the next one is accounts payable. So that one we already probably have an accounts payable account. They probably gave us one of those. So accounts payable. I don't see it. I don't see an accounts payable. Then we don't have an accounts payable account. It's unusual. All right, let's put an accounts payable. Accounts payable. Tab. And this is going to be an AP type of account. So we'll put it into an accounts payable type of account like so. And that looks good. That looks good. I'm going to say save on that one. And this is going to be a credit, I would assume, because it's a liability and they usually have credit balances. And that's going to be for forty five thousand forty five thousand. That's what we'll put there. Forty five. That's what they tell us. And now we're going to need a name for here because we have if it's a if it's a payable account, they force us to have a vendor so that the subsidiary ledger will work out. So they force us to do it, but it makes sense to do that. So I'm glad they force us to do that. So then we're going to go to the capital account, which in our system is going to be retained earnings. So I'm going to put the difference to retained earnings. And that is going to be the two ninety. Is that right? Is that what we need right now? We we should it should be the six ninety five. And that's because I miskeed this one. This one should only be forty five thousand. And then the retained earnings should be six ninety five thousand on the credit side. So let's do that. Bring this bound back over. There should be six nine five thousand. And then that should be it. All right, that should be it. OK, so that's it. So that's going to be our journal entry. Let's go ahead and say save and close and then take a look at the financial statement. So save and close that one. Notice there's no income statement accounts. We're just putting the beginning balances basically as the first day that we're going to be starting work, which is going to be January. Two thousand twenty. Let's go back to the trial balance first. That's probably the easiest way to see it and check our numbers. So I'm going to go to the trial balance tab. Then I'm going to run the report and notice I'm up top and I'm in January, so I'm in two thousand twenty. Then we can compare our balances. So we got the checking account, the checking account up top. If I'm going to go to the beginning balance up here, three hundred thousand checking account that looks good. And then the five thirty then the five hundred and ten in the factory equipment and the five and the five ten and the one fifty three. And then the forty five thousand in the accounts payable. And the real check number is really that retained earnings at the six hundred twelve and that looks pretty good. Right. That looks good. And then if I go to the balance sheet, this is the other place that we can't see it if we then go to the balance sheet and we refresh the balance sheet or simply run the report again, run the report again or refresh. You can hit the refresh button. I think that works up top well as well. It works well as well. So then we can see the same thing here, but in here you can have those subtotals. So it's a little bit more confusing to see it all, but it is all there. So that's going to be our beginning balance. And now we have some other accounts that are kind of worked in there. We got a checking account that at least is a positive number. So we don't have this negative checking account as we as we go through our practice problem. And these are going to be the numbers that we will be working with as we move forward. That's going to be it for now. Let's get out of here.