 for personal use and therefore we're not going to put it into some type of expense but instead into the draws. So the owner took money out of the business for personal use shouldn't be decreasing net income then it should just be taken out of the equity section. So we're going to go ahead and decrease or increase dark draws decreasing equity and note that's a little bit confusing for us to first wrap our head around what is a draw and how does it affect the equity section. So the equity section has a credit balance. You can think that draws are kind of like a contra equity account meaning they're going to be an equity account with a debit balance which is contra to the norm or the winning accounts in the equity section which are credit balances and that's because it will bring down total draws. So it acts like an expense in terms of total equity in that it goes up in the debit direction brings down the total equity balance but it's not part of the income statement it's not something that's going to be calculated in the calculation of revenue minus expenses. It will be decreasing however total equity. So let's go ahead and record that it's going to increase in the debit direction. So we're going to copy the draws we're going to put that on top in v 15 right click and paste 1 2 3 we're going to go ahead and post that out now we're going to post the draws first so in order to do that we're first going to freeze the pains scrolling up putting our cursor in a J1 we are in a J1 then we're going to go to the view tab up top we're going to go to the windows group within the windows group we're selecting the freeze pains and the freeze pains then we're going to go to draws draws is going to be our first light blue or equity accounts in order assets liability and then equity then we'll scroll to the right until we find that equity account here are the asset accounts here are the liability accounts and orange here are the equity accounts we're looking for the equity account of draws there it is we want to be in cell BG 15 BG 15 we're going to select equals within BG 15 and point to that $100 which should bring this balance up from zero by 100 to 100 that same 100 then should be on the trial balance scrolling all the way back to the trial balance to see if that is indeed the case there it is now note that that is decreasing equity because if we take the total equity this is going to be a debit that's a credit and if I highlight all of that that's all equity and it has a credit balance of 158 47 therefore that debit is increasing that total balance however it's not part of the net income calculation here next component will be the checking account there's our checking account here here's our checking account there we're bringing it down we're going to find that checking account on the general ledger here's the general ledger we want to be down here in an 18 an 18 an 18 we're going to select equals and then point to that $100 that will bring the balance down from 99 117 down by 102 99 17 that balanced and also found here 99 17 and we should be back and balance down there looks good next item now we're going to record the service charges that was a $15 service charge the bank just took out of our account we're going to say okay we're going to have to record that on our side when I get that back so we're going to say it's 228 the checking account here is going to be going down that's a debit we're going to make it go down doing the opposite thing to it a credit so we'll copy that we're going to put that on the bottom right click and paste 123 going to go ahead and indent that go into the home tab alignment increase the indentation we will have the dollar amount the dollar amount is $20 it's $20 for the bank service charge and then we're going to debit something for that same amount at the $20 of the bank service charge and what will that debit be it's going to be some type of expense I typically like to put it into an expense called bank service charge although the amount is small at $20 and some companies might put it into some other account such as miscellaneous or some other grouping that's going to be on the decision of the bookkeeper we note that all the expense accounts are debit balance accounts they only go up in the debit direction and therefore we will increase the debit balance expense account with another debit so we're going to copy the bank service charge we're going to put that on the top of our journal entry in v 18 right click and paste 123 here is our amount here on the journal entry we need to now post that to the general ledger here's where the account is on the trial balance it's going to be in the same order on the general ledger let's locate that now we have the assets first on the general ledger then we have the liabilities and then we have the equity we're looking for the bank service charges I believe they're on the bottom they're down here in bk 39 bk 39 what we're going to do is select equals scroll up just a bit and point to that $20 let's do that now we are in bk 39 we're selecting equals we're scrolling up just a bit and pointing to that $20 enter there's the 20 there's the balance of 20 that should