Step 4, Trial balance & cash-basis P&L (Compute · deterministic → you verify)

Layer: the math is deterministic, the AI can structure it, but verify the arithmetic (or do it in a spreadsheet). Debits must equal credits.

Goal: roll the account subtotals into a cash-basis P&L and a balancing trial balance.

Inputs: the account subtotals from the workpaper (Step 3) + beginning equity ($36,000).

Prompt (paste into Claude)

From these account subtotals, produce two things:

1. CASH-BASIS PROFIT & LOSS:
   Total Revenue (4000) − Refunds (4900) − all Expense accounts (5000–6700) = Net Income.

2. TRIAL BALANCE (debits = credits). Conventions for this cash-basis set:
   - DEBITS:  Cash–Operating (ending), Equipment (if you capitalized), all Expenses,
              Owner Distributions (3900), Refunds (4900)
   - CREDITS: Landscaping Revenue (4000), Owner's Equity (3000 beginning $36,000),
              Auto Loan Payable (2000, only if you tracked principal separately)
   Show Total Debits and Total Credits and confirm they are EQUAL.

ACCOUNT SUBTOTALS:
[paste]
BEGINNING EQUITY: $36,000.00

Verify ✅

• Debits = Credits. The identity that makes it balance on cash basis: Cash + Expenses + Distributions + Refunds = Beginning Equity + Revenue. If it doesn't tie, an account total is wrong, recheck the workpaper.

• Sanity-check Net Income against the cash story (busy summer, distributions taken).

• Recompute the totals yourself (or in Excel), never trust the model's arithmetic.

Scope note (be honest about the simplification): this is cash basis, one bank account. Splitting the truck-loan principal to a liability and depreciating the mower are accrual/GAAP moves that need the loan's opening balance and a depreciation schedule, beyond this lab. Flag them; they're the "next level."

You move on with: a balanced trial balance and a P&L you can stand behind.