 In this presentation, we will enter the beginning balances for our other accounts within our practice problem. Get ready because here we go with zero. Here we are in our job costing company dashboard. We've entered the beginning balances for the job related accounts. Now we're going to enter our other beginning balances so we have some context of some accounts within our practice problem. If we go into our Excel worksheet here, we're going to be looking at the balances I'm going to go on over to the trial balance. Also note that I am on the tab EX0. These are going to be the beginning balances that we are going to be working with the 300,000 the factory equipment at the 510, the accumulated depreciation at the 153 and the accounts payable at the 45 and the capital or retained earnings at the 612. This will give us some context to work through these reports and be able to bounce back and forth between the reports and have some accounts to be working with. Back to zero. Let's first take a look at our financial statements. Let's take a look at our balance sheet specifically by going to the accounting drop down then go into that balance sheet report. I'm going to run the balance sheet for 2020 so let's just make it January of 2020. So January 1st 2020 and then if we scroll down, there's not much activity thus far. We've got the cash account now having an overdrawn balance therefore being in a liability section and then the retained earnings. That's what we have thus far. I'm going to copy this tab up top so it's in another tab and we're going to hover over the tab up top, right click on it, duplicate that tab. I'm going to go back to the tab to the left then we're going to open up another report. This one's going to be the trial balance report. We haven't seen it yet. It's a great one. It's a good one. We're going to go into the reports up top. Then we're going to scroll all the way down to the accounting area and then we have the trial balance down here. It's down here under the accounting, the trial balance. This is going to give us our number as a more summarized type of report. That's why it's going to be a little bit easier to see in some cases. So once again, I'm going to be bringing this up to 2020. So let's bring this up to January 1st 2020 that will work update that report and then you'll see there's only two accounts involved here the checking account now having a credit balance given the fact that it is overdrawn and therefore pretty much a liability and then the retained earnings. This is easier to see even though it has the debits and credits because we will not see the subtotals. The more subtotals we have the longer the balance sheet will be and the shorter this kind of report will be. So I'm going to go up top and duplicate this tab again. So I'm going to hover over this tab up top, right click on it and duplicate that tab. So now we have our balance sheet. We have our trial balance and then on the tab to the left that's going to be where we do stuff. So let's go to the tab to the left to be ready to do stuff. We'll even go back to the dashboard to get ready. So now we're going to go back to our Excel worksheet and check out the stuff that needs to be done. So we need to be here. This is where we want to be and we saw where we were at in the system so far and that being with the retained earnings and the cash account. So if we compare where we are at to what we need to do, this is what we need to do. That's where we want to be. This is where we are currently at. If we take the difference between those two, for example, for the cash account, we need to debit the cash accounts by $383,000. Now if you're not used to debits and credits, that's okay. We just, this will be quick. We'll walk through it just so we can get our beginning balances in place. Then we're just going to enter a debit for this account, the factory equipment, credit, the accumulated depreciation, debit, the accounts payable and credit, the capital account. The first one I want to take a look at is going to be the payable account and the reason is because Xero will actually kind of lock this account from journal entries to some degree because it needs to have a vendor related to it in order to post it to it. So let's do that one actually first and use a form to do that one. So I'm going to go back on over here and we're going to go back to Xero and we're going to enter a typical kind of form that you would use in order to record the payable account. So I'm going to select the dropdown up top and let's record a bill type of form. That would be the form that you would typically use for the payable type of account. A bill will increase the payable. I'm going to say the from, I'm just going to say miscellaneous. We'll pick up our miscellaneous contact again and we'll put this as of last year. So I'm going to put this in 2019. Let's make it the end of 2019. So we'll put it in there as of the end of 2019 like so. And then the due date we can make in 2020 if we want. So this is the due date, not when it's going to be entered in there as of. And then the item, I'm not going to put an item, I'm just going to put the description we could put beginning, beginning balance and quantity one and the amount will be for the amount that we need here, which is going to be 45,000. So I'm going to put in the 45,000 here. So there we have it. And then the account, the other account it's going to go to, I'm just going to choose an expense account. And as long as I get an expense account, it'll then roll over from the expense account into the retained earnings for 2020, which is what we want because this is going to be going on the books for 2019 any temporary accounts such as the expense will roll into the retained earnings for 2020. So let's go ahead and do that. We're going to approve that and record that and then we'll see what happens to our trial balance. So if I go back up top, we're going to say it's been done. Let's go back up to our trial balance and see what has happened thus far. Let's update this report. So we will update this report and there's our 45,000 in the accounts payable. I'm going to add that to our beginning balances over here now. So now I'm going to say the accounts payable, this one's right. Has a credit of 45,000 in it. And then the retained earnings has now changed. The retained earnings is now 128,000. It's a debit of 128,000. So 128. So now we're in adjustment to cash and cash is another one where zero limits the amount of adjusting entries typically that you can make. So we're going to go specifically to cash and make an adjustment to cash. So let's go back on over to zero. We're going to make an adjustment to cash. We can do that with a form. So what we really need to have here is we need to be increasing the cash so we can do a receive payment form. So I'm going to go back up top and I'm going to say a receive money type of form that we have. And we're going to put this into the prior period. And as long as we put it into the prior period, anything we put to the temporary account will be rolling over to retained earnings. So that's why we can work this and it'll all be good as of 2020, the start of our period. So once again, I'm going to use our miscellaneous vendor or contact customer contact. Then we're going to select the date. We're going to bring the date back to 2019. So we'll bring this on back 2019, the 31st of 2019. I'm going to have the description, which is going to be beginning balances. And then I'm just going to select the amount, which is going to be for the 383,000, the 383,000, so 383,000, then the other account, I'm just going to put it to a temporary account or any income statement account. In other words, let's put it to revenue, which will then roll forward to the equity section in the current period that being 2020. So let's record this and check that out. Going back down, we're going to go ahead and say save. And then let's go on back to our trial balance and see what the effect is. Back to the trial balance tab up top. And then I'm going to update the reports. Reports is going to be updated. And now you'll see nothing's in revenue because it rolled over from revenue into the retained earnings as of the date that we're going to start our problem that being 2020. So now the bank account is at 300,000. Change our balances over here. I'm going to say now this trial balance is now at 300,000. That's what we wanted. And then the equity has also changed. So the equity is now at the 255,000. 255,000, that's going to be here. Let's check it one more time. It's going to be a credit now. So negative 255,000. All right, so there is that. Now we just need to adjust these accounts. And hopefully we can do these three with a journal entry. So let's go do a journal entry to adjust the last three here. Now the journal entries are a little bit funny to find. They're under the reports actually, which is a little unusual. But they're findable. They're going to be under the accounting, then reports. We're going to enter debits and credits, journal entries here. We then want to go down to the accounting area. Within the accounting area, you want to go to the journal report. So we're looking at the journal report. And then within the journal report, we have this item of add new journal. And that's what we want to do. That's basically adding a journal entry. So we're going to go to the add new journal. And we're going to call it narration, beginning balances. The date, we'll select the date dropdown. Want to bring this back to once again 2019. So we'll bring it to December 2019. And then we're going to pick up our accounts. It's going to be the beginning balances. That's flowing down from the narration. Then we'll pick the amounts over here, which will be the equipment. So if I select the dropdown, we can look for the equipment, which is going to be an assets type of account. So if I scroll on down here, there's our assets. Now we have office equipment or computer equipment. I'm going to go and pick office equipment. It could be any kind of equipment. It might be construction equipment here in our case. But I'm going to pick the office equipment because that will be default settings for the chart of accounts. And we could, of course, change the account names if we want to. But in any case, 510,000. 510,000. And then we're going to say the accumulated depreciation is what we're looking for. So back down to the assets accounts, looking for those assets accounts, we want the less accumulated depreciation. That's going to be a credit, the credit, however, being for the 153,000. So that's going to be the 153,000. Then we want the difference going to the equity account, which I believe is retained earnings is the one we want. Is it? Scroll on down. We're going to be picking. There's the assets, there's equity. And we want the retained earnings, I believe, is the one we want here. So we'll pick that one up. And that's going to be already given to us because that's what we need to be in balance, that being the 357,000. The 357,000 is matching what we have here. That looks good. So let's go ahead and record this and see if our trial balance is what we think it should be. Let's go ahead and post it. Let's open our trial balance back up. Since I closed it, I've been working in the wrong tab here. So let's go back to our trial balance by going to the accounting dropdown. We're going to go into our reports. Let's go into the reports. We want to go into the accounting reports, which are going to be on the left and on the bottom. So here are our accounting reports. We want the trial balance. Let's open that trial balance back up. Let's bring it back to 2020. So we want to be in the time period of 2020. So I'm going to bring this up. Let's just do this. Bring it to January 31st, 2020. Update that report. January 1st would probably be better, but here we go. This is fine. So now let's match these accounts out to what we have on our Excel worksheet. So our Excel worksheet, if I scroll back up top, we've got the 300,000 in cash, 300,000 in cash. That looks good here. We've got the office equipment of the 510. That's correct. And then the credit of the 153,000. Credit 153. Credit the 45,000 for the accounts receivable or accounts payable, that's correct. And then the retained earnings, which is really the check number that we're concerned with. This is kind of like the bottom line check number. If that's right, you're probably on. And that's going to be the 612. So there's the 612. If we were to see this in balance sheet format, let's go on over to the balance sheet, to the tab, to the right. Update the balance sheet. You'll see the same information without the debits and credits, but also with those subcategories. So you can see this report's much longer just given the subcategories. You may be more used to seeing it. And so it might be a good report to be working with, but you could just see the length of it's a bit longer. Obviously the debits and credits might be a pro or a con, but whether you are used to debits and credits or not, the trial balance is something that's used, it's good to get used to because all the accounts will be there in a very quick and easy way. You can use it as basically just a chart of accounts and it will be listing out not only balance sheet accounts, but balance sheet and income statement accounts depending on the time period that you have. So you can really look at everything in a quick view, although you don't get all the subtotals within it. So those are gonna be the beginning balances that we'll work with as we work through entering data into the current time period, which is gonna be 2020 for our practice problem. That's it for now, let's get out of here.