 Liabilities so due to the assets other current liabilities. So here's Alabama. I Think you should go back to Greenbow, Alabama. Let's edit that force cup right there I don't know what I'm talking about in case we're gonna say this is gonna be other Current and then this is gonna instead go into the sales tax payable Sales tax payable account boom alright, so now it's a subsidiary account You can't change delete this account because it tracks sales tax Okay, I was afraid it might do that you would think it would still let me put it under a sales tax Accounts let's close this out and check it out again. So what do we have here other current liabilities and Then the sales tax. So let's try putting the new account then us make it a sub Category of the Alabama account and that I'll clean it up a little bit. So let's go to the new sales tax account we set up so it's gonna be other current liability and We have to do other current liability sales tax Here's the well. Here's the adjustment account. Let's let's take that adjustment account in edit it and put it under one of the Make it subsidiary. See if it lets me do that to Alabama Department of Revenue how about that and then we'll save that one and Say yes Okay, that it allows me to do so I'll clean it up a little bit. Hopefully So I'm gonna run this again on the balance sheet. It would kind of be nice if they let me Have a you would think you'd have a parent account of a sales tax if you had multiple locations But in any case now we've got this this is our sales tax and then this account I put in another account because we did it in kind of a generic format not using the widget because time has not passed So I put it into this Second account you could see what happens here's is in January We have that the total sales tax that was owed and then of course we pay it In February and then and then in February the sales tax keeps on Accumulating upwards and then this is the other sales tax that we had to pay for the five seventy nine Imagining these are representing the state and local although we chose two whole different departments and basically our Practice problem. So basically the idea would be at this point in time Do we're gonna say that this? one eight seven five point oh eight plus this four sixty eight point point seven seven point seven seven is the sales tax that was accrued in January which we paid in February and then this two three one eight point oh four or We can do it this way this This twenty five twenty. This is a negative twenty five. Let's do it this way this Five seventy nine point five one minus twenty five point eight two That's five foot five three sixty nine is the sales tax which accrued so far and We've done the whole month of February which we would pay in March So if I go back to my reports on this side and open up art or transactions and look at my taxes for taxes tab and Then we go into The sales tax if I open up my liability report and I run it for oh Oh Two oh one two four to oh two twenty eight two four and run it So now we have the four four two ninety six and The one one zero seventy four for let's say four four two point nine six plus one one oh point seven four That's the five five three seventy Okay, so that's the general idea of the sales tax remembering that in practice We would want to pay it, you know with the widget So if I go into the the checking account up top then if I if I scroll down we paid The sales tax, but we paid it with just normal check forms So these are the two. It's a check form if we paid it with the widget Then we'd have the special another name kind of like this bill payment But it would be a special one to indicate that it was sales tax that was paid All right, let's go back That is it so this is where we stand as of this point in time on the balance sheet Income statement nothing new happening to the income statement because the sales tax is off income statement in general Both when we record it when using sales forms Sales receipts and invoices and when we pay it with a check form or some kind of sales tax payment form Which is just a special check form. Let's go to the trial balance This is where we stand if your numbers tie out here. That's great If not try adjusting the date see if it's a date range issue assets Liabilities equity income and expenses the order starting with the assets checking account counts receivable Inventory Investments payments to deposit prepaid insurance furniture and fixture Accumulated depreciation contra asset related to the furniture and fixture machinery and equipment That's what the company has who has claimed to those assets the flip side of the coin Liabilities and equity starting with liabilities the accounts payable the visa the sales tax the government and then we have the Bank with the loan payable We have the payroll taxes the government and then we've got unearned revenue if we collected a deposit for example That we owe back or we owe work and then we have claim and the form of equity Starting with the owner Investment similar to common stock if it were a corporation We have the owner's equity similar to retained earnings if a corporation and then the income statement Giving us detail about the last year of operations income minus expenses income credits Expenses debits credits of income minus debits of expenses would give us a credit balance if we have income instead of a loss and That would be net income which would then be part of and roll into equity or retained earnings if it was a corporation and Quickbooks does that itself if we change the range 0101 25 to 010125 because Quickbooks does it on an annual basis