 Here we are in our QuickBooks online test company file. We started up in a prior presentation, noting that we're in the accountant view as opposed to the business view. You can toggle between the two views by going to the cog up top, switch the view on down below, duplicating some tabs to put some reports in, right-clicking the tab up top to duplicate it, right-clicking the duplicated tab to duplicate it again, back to the tab to the middle. We're gonna go to the reports on the left-hand side, open up the balance sheet report, tab to the right as it's thinking, reports on the left. This time, we want the P to the L, the profit to the loss, closing up the hamburger and changing the range. 010125 to 063025, and let's see this at a month-by-month breakout, so we can see those timing differences we've been focused on, and they are beautifully timed with regards to the revenue and the expenses and the proper time periods. Let's go to the tab to the left and close up the hamburger and change the range. 010125 to 1231, not 1231, let's go to 063025, and let's see this one on a class breakout. It's okay without the classes, but it's just leveling it up when you have classiness involved in it as well. And so let's go to the tab to the left and we're down to the projects on the left. We're in project number two, recap in an Excel format of what has been done. We started out with an estimate. Based on that estimate, we came out with a billing structure. The billing structure is not according to what actually happens, but according to the pre-assigned billing structure, we're gonna be charged in the client. We charged them a starting point of the 10,000 basically deposit, and then we had the actual items that took place, broken out between materials, labor, and overhead for what we did. And we recorded those in the format of cost of goods sold and figured out what our revenues should be on more of a completed percentage of completion type of basis so that we can then record our revenue based on these items, as opposed to on our billing items. And we did that through our whole process here and now the job is done. And we can see that because our revenue is now at the 23.77, which was our starting kind of projection for our revenue. And we have then our working process and our billing's account tying out here for the most part, it being off by rounding a difference of a rounding. So now all we need to do is close this job out at this point in time. And from a journal entry perspective, that's quite easy. Just zero, these accounts out. When we look at this same thing on the QuickBooks side of things, note if we had multiple jobs in play, it becomes quite nice on the balance sheet that we have it broken out by class this way because the classes give us that nice breakout. So if I change this to 123125, for example, and I had multiple classes, then I can see this working process broken out so I could see quite clearly that we're done with it. And if I go into it, if I didn't use the classes, I could do it this way as well. Here's my detailed report that I could break out by customer. But remember that if you do it this way, you would need to make sure that you have the customer names, which is another reason that the invoice is a nice form. It's nice to use an invoice as opposed to a journal entry because the journal entry might limit the kind of naming structure over here. And we'll take a look at that shortly with this last bit. So I'm gonna go back on over. And so let's record it with a journal entry and then we'll go over and do it in QuickBooks. So I'm gonna make another blue section for that last journal entry down here. And it was so even before, but now I got this one last bit hanging down here, whatever. And this is gonna be on 5531. We're gonna close this thing out. And I'm just gonna say that working, let's do the billings, needs to be debited by 100,000. And the whip, the work in the process is off by like a rounding difference 1,0001. Needs to be a negative for the credit side of things. And that'll basically balance, take this balance down to zero. Donate it out at the zero. So let's go into the billings first. I'm gonna say F2 plus F2 and just zero this thing out. No effect on the income statement. Billings down to zero. Moe B to the end. And then in the work in process, the other side of things, F2 plus F2. And roll it on down. Work in process. And it goes to zero. So now that everything's closed out and basically the job's done, there's our checking account, which matches the net income. We're off by rounding difference here. So that's okay. That's why we gave that rounding range for our greenness down here. And then the 2377, which is our profit matching what's in our checking account because we've only been recording transactions for this one particular job, which of course matches our estimate that we had over here because we made it all work out perfectly and that our expenses matched exactly to what the estimate is. Now in practice, you might have a difference, of course, between the actual expenses that you'd have to adjust for, kind of like at the end or as you go. But we don't wanna get into, I just wanna look at the revenue recognition at this point in time. Maybe we'll get into more detail with that in a future problem or something. But so let's do that over here. Now naturally, you might say the first form to use would be a journal entry. And you could use a journal entry. However, like if you're trying to sort, like we saw with this account by internally, by name, it can cause a bit of an issue and it might not be as easy to see if I go over here in customer number two and look at the detail. These items are usually gonna be populated when I use forms. So let's do it with a journal entry and then I'll delete it most likely and I'll do it with like an invoice so we can see kind of the difference. So I'm gonna say it would be most natural to someone like me who's, I learned accounting before software to say I'm just gonna do everything with a journal entry, right? Even though that's not usually the best practice because there's a reason that the software is designed to do stuff with the forms. So I'm gonna say in any case if I did it with a journal entry, I would just go, okay, there's a debit here. This billings needs to be debited just like we did billings debited by 100,000 and to close out, close out, out, job number two. And then the name, I do have a name field here which I could put the customer and I'll put project two and hopefully that won't show up in the name field but I have some doubts that it'll do what exactly what we want and I do have the class tracking ability, which is nice. So I could still assign each line item to a class which will be helpful with the journal entry. And then the other side's gonna go to whip, work in process, work in process, work in process. And that's gonna be 100001.2, 100001.2. And the name also is gonna be project two and the class is gonna be project two to close out this thing. So that should do it in terms of the journal entry but let's see if it does everything we would like. So please balance, it's not in balance. Okay, I'm off by that. And so the difference, I'm just gonna put the cost of goods sold of the two of the 110 because it's immaterial. I wanna put it to an income statement account so that it'll close out and wash out in the closing process instead of being on a balance sheet account where it'll hang around, right? I want it to disappear because it's immaterial. Let it wash out to retained earnings or capital account or equity or whatever. So save it and close it and then we're gonna go to the tab to the right and run it. And so now it's nice and closed out and the billings account is closed and the billings and work in process. So if I go into the work in process, however,