 So we have the sales here. Sales has a credit in it. We need to make it go down to zero to close it out. How do we do that? We do the opposite thing to it, which in this case would be a debit. So I'm going to copy this. I'm going to put it up in H5, right-click, paste 1, 2, 3. That's going to be the 150,000. If we debit something, we're also going to credit something. I'm going to represent that with a negative 150 for our worksheet here to have the credits in brackets. That's going to go into the income summary, our clearing account here. So this is a clearing account. We're going to copy the income summary. That will be the credit in H6, right-click, and paste 1, 2, 3. All right, let's post this one out. We're going to go to sales in Infit16. We're going to select equal, point to the sales, and see if it does what we want it to do. What do we want it to do? We want sales to go down to zero because we're going to close out the sale. So we're going to say enter. Sales goes down to zero. We closed it out. We're going to put that into income summary in Infit16. So we're in Infit16 equals, and we're going to point to the 150. That'll bring the zero up to 150. Back in balance down here with the zero. We're going to do the same thing for the expense accounts. We're going to make a new journal entry. I want to make these two go to zero. So these two have debit balances, like all expenses do, to make it go down. We're going to do the opposite thing to it, which in this case is a credit. So I'm going to copy both of these. I'm going to skip a line. I'm going to skip another line because I don't want to, I want to put the credits on the bottom. So then we're going to be down here in H9. So in H9, I'm going to right-click, paste 123, and then I'm going to put credits in here for 60 and 10 to make those go down to zero. So I'm going to put a negative 60,000 in J9 and then a negative 10,000 in J10. And enter. Those will format for us, of course. Then we're going to need a debit of how much 60 plus 10, 70. And I want it to be a positive. So I could put a positive 70. I'm going to put my negative sum function in there. So this is what I call a plug function, set of equal negative, SUM, brackets, the sum function. Notice if this pops up here, you can move it out of the way or you can just start from the bottom. I like to highlight all four columns, all four cells, just in case there's amounts and more than those cells and enter. Then we end up with a positive number. So it summed those up, which would be a negative 70, then flip the sign because we put a negative in front of it. What account is that going to go to? The income summary account. I'm going to copy the income summary. I'm going to put that that will be our debit in H8 and right click pasting it 123. All right, let's post this out. I'm going to go over here in in 15. There's something in it. What's in it? J6 is in it that 150. I'm going to therefore double click on it, go to the end of it and say plus and then point to this 70,000 and enter. All right, then I'm going to close these two out. So now we're going to post the 60 and the 10. So we are in in 17 equals the 60,000. This should go down to zero once we select enter like so. And then we're going to post the wages expense in in 18 equals point to that 10,000. The 10 should go down to zero. We should be back in balance. All right, so what has happened now? We've closed these three out. That's what we wanted to happen. And what is an income summary now? 80,000. That 80,000 being net income. So notice that many problems will actually ask they'll shorten the whole process up by just saying close the income summary out to the capital count. And you're supposed to just kind of realize this whole process has happened up to this point. And now we're really allocating net income, which is now an income summary to the capital counts. So that's where we're going to start. That's where some of many problems we'll just basically say without giving you a trial balance or anything. The income summary has 80,000 and it closed it out to the capital count based on these criteria. So this is the criteria that we are now allocating this 80,000 to C capital X capital and S capital. How are we going to do it? Based on this allocation. So this allocation is how we're going to do that. So 80,000 is income summary. We want to make that go down to zero. How do we do that? Well, it has a credit in it. We're going to do the opposite, which is a debit. So I'm going to copy that. I'm going to put that in H12, right click, paste one, two, three. It's going to go down by 80,000 debit. Then we're going to have to credit something for 80,000. And of course we're going to have to credit the three partner capital counts because there's three people we need to credit now for their capital counts. So we're going to credit and then copy the X capital account. I'm going to copy that right click, copy and paste it in H14, right click, paste one, two, three. And then we're going to copy the S capital in L13, right click and copy. And then we're going to paste that one, two, three. So those are the three capital counts that of course will be affected in this. Now you might have thought, is there an easier way to do that? Could we have copied and pasted that a little bit faster? And there is. So let me show you that real quick. I'm going to delete these. If you put your cursor on C capital, pull down the control. Don't hit the scroll bar while you're holding down control. Funny things will happen. And then go to the X capital and then the S capital. Notice we're highlighting what they call non-adjacent sales, sales that aren't next to each other. And then if we copy that right click and copy those and then paste those, we go right click and paste one, two, three. And we can do that all in one setting like that. And then we're going to allocate this out in accordance to of course our capital allocation that we decided over here which adds up to 80,000. So C, we decided that we're going to allocate 24067. I'm going to put a negative to represent it as a credit. Then a negative 3267. And then a negative 25667 and enter. So if we highlight those then notice it adds up to 80,001. And so if I highlight all of them, I'm off by, you know, I forgot one dollar there. Why? And that's because of course of rounding. So we have a rounding issue. It's a dollar so that's usually not going to be, you know, causing too much problems. So we could take care of that though by saying how about I add one to one of these and we should be okay. And then obviously S corporation got ripped off of a dollar there so if you know if that upsets anyone we could we can negotiate that. But that will happen with rounding issues here. So we could have some rounding issues. Just keep that in mind if you're off by a dollar. Then just note that that's because of rounding. All right let's allocate this out. So we're going to double click on the income summary here. We're going to double click, go to the end, something's in it. We're going to say plus and point to that 80,000. That should bring the income summary down to zero. Then we're going to post out the capital count. So we're going to start over here in N10. I'm sorry N9 equals and we're going to post to the C's capital account. What's going to happen? It's going to go up in the credit direction by the 24 because of course C is owed more money at this time. And then we're going to go to the X capital account, the next partner in N11 equals we'll point to the 30,267. What's going to happen? It's going to go up in the credit direction by 30,267 to 246,267 because we owe X more money. And then we're going to go to S capital, same thing in N13 equals. We're going to point to that 25,666. In this case what's going to happen? The amount's going to go up to the 145,666 because we owe S more money in this case. All right now we need to do the last part of the closing process which is always to close out the withdrawals to the respective capital accounts, withdrawals being the money that was taken out. We need to take this draws out to that capital, this draws to that capital, this draws to that capital. We could think about it this way. We can think well the draws need to go to zero. So I'm going to take all the draws and they have debit balances in them. We need to make them go down so we're going to do the opposite thing to it which in this case would be a credit. So I'm going to do the same thing. I'm going to try to do this at one time. I'm going to copy, I'm going to put my cursor on C, withdrawals, hold down control, put my cursor on X withdrawals, hold down control. I'm still holding root control and then SS withdrawals. Then right click on those, copy those. Now I want to put these on the bottom and there's going to be three capital accounts on the top. So I'm going to skip a line for a new journal entry. Then I'm going to skip three more lines one, two, three because those are where the capital accounts are going to go on top and then put it down here on H20, right click and paste one, two, three. So that's where it's going to go because I want three capital accounts on top here. So the drawing accounts then are going to go down by what is in them. So we're going to put a credit of 18,000. We're going to put a credit for X withdrawals of a credit negative 38,000. Then we're going to put a credit for X withdrawals and J22 of a negative 24,000. And then we're going to have to put the capital accounts to which those draws will be allocated to, which is going to be, I'm going to do the same thing. I'm going to hold down control and put my cursor on C capital, then hold down control, then highlight X capital, then highlight S capital, while holding down control, we have the non-adjacent sales highlighted. Then we're going to right click and copy those, put our cursor on the top three cells and right click and paste one, two, three. And now we have to put the respective debits here. So the 18 draws to C capital will be going to the capital account for C. So we're going to put 18,000. Then the withdrawals for the X withdrawals will of course be going to X's capital account 38,000. And then S's withdrawals will be going to S's capital account of 24,000. So let's post that and see if it does what we expect it to do. What do we expect it to do? We want the withdrawals to go to zero, zero, zero. And then the capital accounts will go down by the withdrawals. Why? Because this is how much is owed to that partner. This is how much the partner took out. Therefore the company no longer owes that partner the 18,000. So these two are really going to make each other go down. This is basically a contra equity account. So let's see that. We're going to go to the capital account, something's in it. There it is. It's J13 in there. We're going to double click on it, go to the end of it and say plus. And then point to that 18, that's going to make the capital account go down. We're going to do the same thing to the X's. So here's the X capital. We're going to point that to X capital. We're going to put that in the adjusting column, double click on it, go to the end of it. Plus point to that 38. That's going to make this amount go down. We're going to do the same thing to S capital. Post that out to S capital, something's in it. Going to double click on it, go to the end of it and plus point to that 24,000. That's going to make this amount go down. All right, now we're going to post these three. So we're going to post the S withdrawals. So we're going to be here in in 10 equals and point to that 18,000. That should make the 18 go to zero. Like so, we're going to go to N12 and say equals point to the 38,000. That will make this 38 go to zero. And then we're going to do the same thing for an N14 for the S withdrawals equals and point to the 24. That's going to make this 24 go to zero. All right, so there we have it. So now we have closed this out. Same closing process as for a sole proprietor into that. We have everything below the capital accounts being zero at the end of the day and we have all the respective draws accounts zero and the capital accounts now represented by the three partnerships. In this case the capital counts for the three partners in the partnership.