 We're going to say edit this one. And we're going to say that this is going to be. So then I also often will abbreviate this, which is kind of ugly. But accumulated depreciation is so long that it's easier to just say, like, a Q, ACC, D, pre, and then fixed assets. Now, some would argue you don't even need to say accumulated depreciation if you make it a sub-account of the other fixed asset account. But I like to have it in there because it's easier for me to do the journal entries. Otherwise, you've got multiple accounts with the same name that just are called accumulated depreciation, which isn't helpful. And you're just going to have to change the name anyways, because QuickBooks won't let you have two accounts with the same name. But we're going to put it under furniture and fixture. So there it is. And let's check that out. So let's save that. And changing the type, OK, that's OK. Boom, and see if I can find it now. It took me back to the right place this time. That's good. So now it's a sub-account. Let's take a look at it on the balance sheet. So if I run it, so now we can see, it works out pretty nice this way, because then the parent account also noticed that if I made a separate sub-account called furniture and fixture, and then I made two, if I made a separate parent account called furniture and fixture, and then two accounts underneath it called accumulated depreciation and cost, then the accumulated depreciation ends up being on top of the cost due to the fact of alphabetical order. So this way actually works pretty nice, because now the furniture and fixture is on top, even though the accumulated depreciation starts with an A. So we have this, and you also eliminate one extra line. Otherwise, there would be one extra line. So you're also making your financials a little bit shorter doing that. So this is the cost. This is the accumulated depreciation for it. And this is the book value, which is great. So I'm going to do the same format for the machinery and equipment, although there is no accumulated depreciation yet posted, but we will have it when we do the adjusting entries in a future course or section. So let's get ready for that now. So I'm going to do the same thing for the machinery and equipment. Dough and day for the deals for crying out loud meals. This is my Spanish. It's half Spanish, half English. Deals, meals, deals for crying out loud meals. OK, I'm going to make another. So what I'll do here is I'm going to make another one. And I'm going to say this is going to be a fixed asset type of account. So it's an asset. And then we're going to make it under the fixed assets, under machinery and equipment. And so I'm going to call it machinery and equipment. And then we're going to say here, I'm just going to say ACCDPRE machinery and equipment. I just think it sounds cool too. ACCDPRE sounds better than accumulated depreciation. It's the ACCDPRE. That's what we're talking about here. Let's run it. And so there we have it. And so if I scroll down, we've got the furniture and equipment and then these subcategories there as well. So that's going to be the general idea. If I go back to the balance sheet, we run it again. Then we've got these nice subcategories. Nothing new happened here because there's nothing in the subcategory yet. But when I post to it as we will do in a future course or section in the adjusting entries, then we'll have this dropdown for each of them. So now I'll be able to show total fixed assets and then each fixed asset category in terms of the cost as well as the accumulated depreciation and the book value per category. Or I can collapse each category showing just the book value per category. So pretty fancy on that. So that looks good. All right, and also when we do that, we'll do our adjusting entry with this form over here. OK, let's see where we stand in our trial balance. Let's go to the trustee TB, run it. We haven't done much new except for that one recategorization of the fixed assets. If your numbers tie up to these numbers, great. If not, try doing a date range, and see if that is the issue. We've got the balance sheet on top of the income statement starting with the assets. These are all assets, cash, accounts receivable, inventory, investment, payments to deposit, prepaid insurance, the fixed assets, the accumulated depreciation, contra asset tied intimately to the fixed asset. We basically took the fixed asset account and broke it into two halves. So that's why we get a contra account because it's part of another account. Doesn't really stand on its own leg. It's just one leg or the other. Anyway, machinery and then we have, those are what the company has in terms of dollars, not in terms of units. Then we have the other side of the coin who has claimed to the value of the assets. We have then the liabilities and the equity, first liabilities like the accounts payable, the visa, the state with the sales tax, the government with, I mean, sorry, the bank with the loans and then the government again with the payroll taxes and then unearned revenue. If we got some kind of deposit that we have not yet earned and then our portion as owners, owner's equity such as the investment similar to the capital or I'm sorry, common stock if we were a corporation and then the owner's equity similar to retained earnings and then the whole income statement given us detail about one year of information typically for QuickBooks. And if we take the credits, which are income minus the debit, which are expenses, we should get a net credit balance, net income that could be thought of as part of the owner's equity or retained earnings if a corporation, QuickBooks doing that closing process for us on a yearly basis. We can see if we bring it up one more year, 0101.25, 0101.25, run it. The whole income statement gets smushed together in owner's equity. The odometer of the income statement being reset at zero for the next trip, starting in the next year, all income accounts, the temporary accounts of income accounts, then resetting starting over owner's equity similar to the retained earnings representing the odometer that's not being reset because it is the total distance that has been tracked in terms of one lump sum number over the life of the corporation, net income over the life of the corporation less the amount that has been distributed out in the form of draws if a sole proprietorship dividends if it was a corporation.