 reports on the left. Let's close up the hand boogie up top. I often when I go into the trial balance just search for it like this up top or I'll save the trial balance as one of my favorite reports but the trial balance is located down here just so we know where it is at in the accounting area. I believe it's under the for my accountant area because it has debits and credits in it so that's going to be the general idea for it so let's open it up even if you're not familiar with debits and credits I think the trial balance can be a really good report and we will be using it in the second half or future course when we start a practice problem from scratch and start to build it because the trial balance is thought to be kind of that that building component or stepping stone before we get to the actual construction of the financial statements. Let's think about that in more depth in a sec. Let's go from 010122 to 123122 and run it. So the trial balance you can think about in essence as being the balance sheet on top of the income statement while taking out all kind of subtotals within the trial balance therefore you have a much more streamlined report. So another in essence you have the balance sheet over here that's assets, liabilities and equity you have your accounting equation it ends in the equity section retained earnings being the bottom account and then you've got the net income which is really part of retained earnings that's basically the income statement and then you have the income statement which is the income and cost of goods sold expenses and so on. In the trial balance you could just if you could just see where the cutoffs are then you can use the trial balance even if you don't understand the debits and credits to be kind of that report that you use to verify transactions. So I could see balance sheet accounts here's the assets and then when it goes over to a credit that's the first liability which is accounts payable in this case and then you go down to the equity section which is going to be landing here's the accounts payable and the opening balance so there's the equity section for the opening balance and then you've got the income statement accounts and you've got all these income statement accounts because it's a landscaping business cost of goods sold and then the expense accounts. So the reason that's useful is that because when we do the data input up top and we select the plus button for example all these transactions are being used to do actual journal entries we've talked about every time we enter a transaction we kind of want to verify or think about what it's doing to the financial statements balance sheet and income statement so we went to these transactions and then went to the balance sheet and income statement to drill back down. Now if you understand the trial balance you can just have this report open instead of the balance sheet and income statement and as you enter checks for example you can go into this account and drill down from the trial balance which can be a little bit more streamlined. If the other side was some kind of expense the expense is on the same report down at the bottom in the expense area just without the subtotals and you can still use that to drill down and so that's a nice quick way that you can kind of verify the activity. So I'm going to go back again