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This lecture covers the energy balance in thermodynamics, focusing on current and entropy source. It discusses the local equilibrium hypothesis, expressing current and entropy source densities in terms of other state fields. The lecture also delves into the stress tensor, introducing the concept of affinity in chemical reactions and the equation for entropy. Additionally, it explores the continuity equation for entropy and the local thermostat equation. The instructor emphasizes the importance of understanding energy transfer mechanisms and their implications in engineering applications.