 pull it together you confused me now it's all over I'm not gonna understand it now you messed me up sales tax this is the sales tax form so if I go into the sales tax form or number or GL transaction report then these are gonna be invoices and the sales receipts so this went up through January here so in terms of our running balance this is the amount that we might owe in February right and then we're gonna let the running balance for February continue to accumulate upward would be the general idea so we are in essence gonna write a check for the sales tax that has accumulated up through January in our practice in our practice problem I'm just gonna do that with like a normal kind of check or money out spend money type of form I'm actually gonna do two checks which hopefully add up to this amount because I'm gonna break out the locations between the local and this state in accordance with what I have in my practice problem because in essence I want the bank feeds to tie out when we get to the bank feeds in the future course or section all right so I'm just in essence gonna write two checks or have money out type forms so I'm gonna go let's go to the drop-down and we're gonna say spend money more money's being spent coming out of the checking account going to the government more money's being spent going to the government and so this is gonna I'm gonna call this the city I'm gonna make a city tax California I'm just making a generic this is who I would have to pay and you know I'm in California so this isn't the actual state tax sales tax collection place but I'm just making it generic that's the point this is gonna be as of the end of Feb Feb 28 Feb 28 is the date I'm gonna make it a check and then I'm gonna go down and say that this is gonna go to I'll just say this is gonna pay for Jan sales tax and I'm gonna make this amount for 1875.09 and it's gonna go to the sales tax liability account decreasing that liability account all right so what's this gonna do it's gonna be a money spend money form decreasing the checking account the other side going to the liability account not an expense account decreasing the liability account all right and I'm gonna I'm gonna write another one as well so I'm gonna save and another thank you state for taking my money may I have another and we're gonna say save and the state's like yeah you're looking to hit it you can have another we can hit you all night long with taxes we can tax you till the moon and back so this is gonna be let's call this the state sales sales tax California and we'll make another tab on that one so we have the city and state is this is a generic vendor but that's the idea we're gonna bring this back to February 28 and this is gonna be one and 468.77 and once again sales tax the pay the liability account is the account that we're gonna hit on that one so this will be a check decreasing the cash account other side going into the liability let's save it and that have you had enough have you had enough now I'll tell you when he's had enough I've had enough no more taxes we're gonna go then okay let's go to the balance sheet we scroll down on the balance sheet we've got the checking account if we go into the checking and check it out we're gonna scroll down and we see of course the two checks that we have written so here they are right there boom boom and then I'm gonna go back up and then the other side not going to the income statement but rather decreasing the liability for sales tax so if I go down there's the sales tax we're down to 55369 it didn't go down to zero we didn't pay the full amount off because we only paid the amount off for January so if I go into that we can see the detail so I'm gonna say alright let's check it out then scrolling down we see the activity we owed at the end of the January that two three four three eighty five so let's pull out the trustee calculator just to check out some stuff here trustee calculator we have these two payments we made down here one eight seven five point oh nine plus four sixty eight point seven seven and that adds up to the that two three four three eighty five it's off by a penny but that's cool that's just rounding man that's just rounding so then the sales that we made in February we have not yet paid yet right so that's gonna be this one one oh plus one oh four point seven plus two four four plus six five plus three zero there's the five the five five three sixty nine off by a penny that's cool that's not I'm not gonna let that bother me even though I'd like it to be like why why is it okay it's okay doesn't need to be perfect so in any case that's what we'll pay for February sales that happened I'm gonna go back that happened in will pay it in March for the sales that happened in February notice on the income statement again we didn't we paid that money and you're gonna say well why don't I have an expense for it why don't I have an expense I should get a deduction for my income taxes and if you're in the United States no because you didn't record the revenue in there either if you have a system where you did record the revenue in sales then you got to figure something out because you in essence you should remove the revenue from the sales but generally the idea would be that both the revenue and the expenses are off income statement on balance sheet in the sales tax payable account that's the idea that's the idea let's open up the trial balance and see where we stand at this point in time tab into the right accounting drop-down we want to go into the reports and type in trial balance to call up the trial balance you just type in its name and the trial balance appears you got to be careful with what you type into the magic keyboard things just show up once you type it in there and so we're gonna say this is gonna go custom date 2023 and okay update it so that's what we have and if your numbers tie out to these numbers great if not if you were in balance last time or you tied out to us last time you were on before but you're off now then what we changed we change we made a change to the checking account and we made a change to the sales tax account you would think those would be the adjusted amounts so you can you can expand the date range see if that's a date issue and then drill down to the source documents and possibly make changes to correct whatever needs correcting from there