 Also just note that when you buy the equipment, you probably wanna save the detailed information of what you're buying. You don't want it to just say like equipment because on the tax side of things and the sub ledger, they wanna list out exactly what you purchased. If it was five forklifts, you wanna put five forklifts. If it was 10 computers, you wanna list out each computer separately on the sub ledger because if they don't do that, some tax preparers won't, they'll try to shortcut it. It'll be fine in the year that you put it on the books, but when you sell one of five forklifts and they have five forklifts grouped together as just equipment, and you don't even know it's a forklift or whatever, and you can't, you try to figure out which one you sold and even though you figured out it's on, you got five on one line item on the sub ledger, it's gonna be a mess, right? So you wanna make sure, you wanna try to have as much detail as possible so that the sub ledger, usually prepared by the tax return, has the details so that you can actually assign what's on each line item of particular piece of equipment to that piece of equipment in the office space or in the workplace so that when you sell it, you can know which one to sell, which one to take off the amortization schedule. All right, that said, let's add it. We get it, we get it. Let's go, let's see what happens. So we've got a new rule. If I go to the rules, there are rules here. So there we have the rules. This is the new one. If I go to the balance sheet, run it, and we dive into the checking account, diving into the checking, there's the transaction, there's the expense form. So it's like a check form, but an expense form, check form without a check number. And there it is in check form format. So we're now to the source document, which doesn't take us to the bank feeds, of course, but rather to a check form. And then we're gonna go back on up, back on over to the profit and loss, the PNEL to run it again. There's nothing on the PNEL. I just wanted to point that out because it's not an expense. We did an accrual thing, even small businesses forced to do the accrual thing by putting it on the books as a fixed asset. So if I go into the fixed assets here, there we have it. There's our expense form drilling back down on it. There's the expense form. You can see the attachment that it matches to a banking transaction. Of course it does, because we created it from the bank transaction, but that helps us to kind of reconcile that this is tying out to something that did indeed clear the bank. Now, at the end of the year, there's not gonna be too many transactions in the equipment account, as opposed to a cash account, for example, because we don't buy equipment all the time. You're gonna wanna give this detail most likely to your CPA along with the added detail of what you purchase, financing options, and so on, to try to straighten out these transactions, which is tedious, but not too bad, given the fact that there's not too many of them typically. So that's the general idea. When will we be expensing this equipment account? Don't I get to expense it at some point for taxes? Do I get a benefit of it to write it off? We do, that's the form of depreciation. So if we depreciate it, and that, again, usually often done by the tax software, tax depreciation is different than book depreciation. So you might keep your books if you're in a small business on tax depreciation. So you don't have two depreciation schedules, or you can have book depreciation and then the tax depreciation and have those two schedules to deal with. And so you probably wanna discuss that. I would definitely discuss that with your accountant in terms of what your best options are for lining up the equipment, how to record the equipment, how to record the financing, how to categorize the categories of equipment to line up to the sub ledger and how to depreciate the equipment, whether or not the accountant is gonna be running book and tax depreciation schedules to help you out with the recording of the adjusting entries to record depreciation expense periodically. Now we also know, of course, that we did create a new vendor over here. So if I wanted to track this stuff by vendor, I can go to the first tab. We got a new GL account that we set up the GL account, by the way, as well over here. There's our fixed asset account that we set up on the fly as we were flying. And then also if I hit the hand boogie, then we're in the expenses. We've got the vendor center, which by the way, if you're in the business view is under the get paid and pay area, little in less formal terminology over here. And we're in the pay area in the vendors. So there you've got your information there and we can sort that now we've got our new vendor that we set up and we can go into it and we can see the detail by vendors. You don't have to add the vendor when you do the data input from the bank feeds. But if you don't, you're losing this level of being able to sort your data. And you might as well be able to sort your data of this way as well. If you have the vendor information, which you often do, if they're electronic transfers, because you can pull it from the bank feed stuff in the memo section. So also if you go to your expenses, you can sort your stuff by expense forms. We've mainly been making expense forms. If you're in the business view, by the way, that's located in a bit different area. It's under bookkeeping transactions, expense forms. All right, I'm gonna actually delete this beginning balance transactions because I wanna tie out to what I had before. So remember, you'll recall that if I went into this checking account, this amount was that beginning balance. I'm actually gonna remove this amount and we'll deal with putting the beginning balance in place when we do the bank reconciliation. So I'm gonna actually remove this because QuickBooks recorded it when I first put the thing on the books. And I don't want it there. So I'm gonna say more, and I'm just gonna delete it. So be careful deleting stuff, and we could adjust it. If you wanna keep it there and you wanted to adjust it, we could do that. But for the practice problem to tie into my worksheet, I wanna delete it and we'll deal with that beginning balance issue later. Now we're left with, of course, a negative balance account because we don't have any beginning balance and all we've had are outflows and we'll deal with that beginning balance issue when we do the bank reconciliation. So I'm gonna right-click and let's just look at the trial balance. I'm gonna duplicate and take a look at the trustee TB, trial balance, Teba, the Teba. And then we're gonna say trial balance. And this is 01, 01, 22 to 02, 12, 31, 22, run it. So this is where we stand at this point in time. You can see the balance sheet on top of the income statement. You can see how much more streamlined it is, of course, to see the construction of the trial balance because you don't have all the subtotals involved. This, of course, being the asset account, asset account, we don't have any equity accounts here yet. Although you could see we do have them on the balance sheet, right? You could say, well, why don't I have an equity account because its income is rolling into the equity and that income after the following year in 2023 for the next year will roll into the equity. So now it goes net income into equity. So right here, that equity is reflected by these two income accounts. If I was to go to the next year up this way just so you could see how this is being constructed, it would roll into equity. So now I don't have an income statement, I just have the equity from the prior period, you might call it retained earnings, earnings that have been accumulated, in this case losses that have been accumulated because we only had expenses, but net loss that has accumulated, if it was earnings, it would be accumulated earnings, retained earnings in essence, which for sole proprietorship we usually just call owner's equity or something, which we have not yet distributed out to the owners.