 category in the same fashion because we might have more liabilities in there so I'm going to call this then total long term liabilities check and then we'll say that equals that zero put an underline there because we need to emphasize it a line underneath also known as the underline home tab alignment indentation once again alignment indentation that's going to give us the total liability liabilities IES summing it up once again the trusty sum function trusty sum once again coming to our rescue rescue us some function font group underline and then we got the total hold on a second then we got the equity equity section equity we're going to have just a sole proprietorship so we only got that one basically account if it was a sole proprietor we're going to call it equity you might call it capital but also or owners equity you might call it and if it was a if it was a corporation you might have retained earnings and then common stock breaking those two things out but total equity you could think about as kind of like the same remember that equity kind of represents what the owner has in the company or in other words what the assets allocated to the owners in essence is as opposed to opposed to third-party liabilities and then you have to think about how you're going to break that out amongst the owners which if there's only one which would be a capital account but if there's like two or more partnership for example you got to break it out between the partners to say who has claimed you know and so on and then if it's a if the corporation then you got shares that are basically all the same kind of ownership distribution so you could just call it retained earnings one chunk which the shares represent a uniform chunk of it and then the common stock which is basically the investment versus the earnings that have been accumulated and retained all right so let's make this paintbrush that one pulling out the paintbrush and put it in the blue bucket home tab paintbrush put some blue on it put some blue that's a wonderful looking blue and we're just going to paint that right there whoo that's nice okay so then we're going to say this is going to be the equity account equity account I'm just going to put this right in the right in the total column because I don't need any subcategories here because we only got one equity account so I'll just put that in the total and we might just call it total equity I'll just keep it with equity and then we're going to say the total is going to be the total liabilities and equity summing this up we're going to sum this up then which is going to be equals the sum function of the 15,000 and the 8396 which should equal this number when we're done this is so a little suspense here before I hit enter little suspense hold on here we go and there it did it did it did just what we saw just what we planned it should do the very thing we planned to happen has indeed actually happened what a coincidence so I'm going to underline here font group and underline and then let's put an underline a double underline here by going to the font group and double underline that one so that looks good is there any more formatting stuff I can put an underline here let's put the double d underline here and then the one underline there so that looks good and then that looks pretty good doesn't it is there anything I'm missing do you guys see something I'm I'm missing I probably misspelled something right let me check my spelling see if it says I misspelled something I'm going to say ignore ignore that I don't think that's a problem spell check says it's okay all right it's good enough for me and then we're going to make this blue let's make this blue for font sake for formatting sake font group will put the borders around it all the borders all border and then the blue which is that blue right there which I could find right here by going to that blue just like the accounting is fun or the excel is fun guy used to say and then I can move this one over I can put that on my paintbrush paintbrushy that one right here let's paintbrush this one over paintbrush that black to right there and let's make this our blue and bordered blue and border font group border blue border blue and then do that here border blue border blue there we've got that and then let's put this let's put this balance sheet in the middle so I can put it in the middle by selecting this whole thing and we could go to the home tab alignment and do that which is what most people would do but then you got that one large cell which messes other things up sometimes so I don't recommend it personally I'm going to undo that the better way mucho mejor is going to go down to the format cells here when you got that whole thing selected alignment as we've seen in the past the horizontal alignment center across the selection and okay there it is so we get kind of a similar result so there we have it and we can double check that to this trial balance if you if you form out of this trial balance this way which is the best way to do it personally if I do say so myself and that means that you can add this whole thing up and see that you're in balance you can add these up and just say that that confirms what's in my asset area and then we've got the liabilities which I can confirm here which is quite easy because there's only one account in it and you can see that the liabilities and equity if I sum them up 23 396 adds up to the 23 396 I don't need to do any added and subtracting subtract one column from the other column and blah blah it's really easy if you set it up this in this debit's positive credits negative on the trial balance to then convert that to the financial statements being able to check every subtotal along the way varies you know much more easily than you could if you had them broken out with this basically two columns or in this worksheet would have six columns right and then you got to add in together the debits and credits and so on