Here's where the fun begins. A trial balance is the heart and soul of the accounting cycle. It's a document that lets you see all of your financial information in one place. For Step 3, you'll focus on creating an unadjusted trial balance. This is what you get when you calculate all of the balances for your account. Think of it more as a first draft. Here, let me show you an example. Let's talk a little bit about how to manually create a trial balance with using the general ledger as a base. I've pulled a 2020 general ledger in QuickBooks and basically this is showing all the accounts on the chart of accounts, their beginning balance at the beginning of the period which would have been January 1st, so the beginning balance plus all the transactions that ran through this, in this case, a checking account. Again, the general ledger is going to list all accounts on the chart of accounts for a date range and show every single transaction that went in and out of that, in this case, bank account through the year. If I scroll down, you can see we've got a lot of activity in this map to keep scrolling. This is a lot of information to just throw at somebody. I'm going to click down until I get to December. I'll have an ending balance for this bank account at December 31st. Let's see what that is. We go up a bit. Here it is. We're doing the running total and the ending balance at 12/31 is 53,845. That number we're going to bring over manually to a trial balance in Excel. We're basically crunching this down. We're not seeing the details. If we go over here, I would at December 31st would put in the company checking account and just key that right in. Let me go back. This is saying 53,845. This already has a field. Let me get my change in, 32. Basically, I'm bringing that number across. I got an easier way to do this. Instead of me scrolling all the way down, this actually lets me collapse the activity. Now I know the savings account is 18,220, copy that. Well, I think I copied it, copy that, and maybe paste it there. I don't have to. The number is already there. I'm just going to bring all these balances over. Some accounts have a debit balance naturally, and some accounts have a credit balance naturally. We do have a cheat sheet for you that shows you what accounts you can expect to see debit and credit balance is in. Let's see if petty cash is matching up. Yeah, 500. Normally, bank accounts have debit balances, debt or liabilities have credit balances. Again, you're going to just go back to general ledger and just keep pulling in the merchant account which has a negative value, that's not good, but I would put that in the credit balance here because it's a negative asset. Basically, you just key it all in and you got to make sure that the totals are the same for each of those areas. I should point out that this goes all the way down the chart of accounts. These are costs of goods sold, income, expenses, everything. A little bit of work to do here. Honestly, I would just pull the trial balance in QuickBooks, but that's just me.