 In this presentation, we're going to enter a transaction related to the purchasing of equipment with debt. In other words, we're purchasing long-term equipment, property plants, and equipment, and depreciable assets type of equipment. We have done so in the past, but done so with cash. When we enter this information with debt, then we can't enter basically a cash transaction. So we have to typically use something other than a normal type of form or document such as a journal entry. Let's get started with Sage50 cloud accounting. Here we are in our Get Great Guitars file. We're currently in the customer and sales section. We're going to start off by opening up our reports. Let's go to the reports dropdown. We're going to go to the financial statements. We're going to be opening up that favorite financial, that being the balance sheet. We're in February. That's what we want. So I'm going to be picking the month of February, say okay. And then we're going to be purchasing property, plant, and equipment. So we're purchasing long-term or depreciable assets. It can be called. That's going to be down here in the equipment section. We've already done this in the past. However, last time we paid cash for it. And you'll recall that property plants and equipment is one of those types of things that we don't purchase all the time. Therefore, there's no standard flow process. There's no like form for it. So typically, when we think of the data input, we want to first think, is this a day-to-day type of transaction? If so, there's probably a form invoice or something else, a bill or something that checks, you know, that we can relate to it. If it's not something that happens every day, there's probably not a normal form that we have to enter, then we're going to ask, well, is cash affected? If cash is affected, maybe we can write a check or we can use some kind of like a deposit form or something like that. If cash is not affected, then we typically have to default to the journal entry. So this is an example where we typically would basically default to a journal entry, entering this with the old debits and credits, going back to the old debits and credits. And that's how you typically want to think about your transactions. And again, if you're from financial accounting, you might want to do everything with journal entries. That's not typically what you want to do because you want to set up the forms so that the data input could be done easily by anybody. And for the day-to-day transactions and only used really the journal entries for those types of things that aren't part of the day-to-day type of processes purchasing equipment being one of them. So then if we go to the tasks dropdown, which is going to go to the tasks dropdown and we're looking for the journal entry, we want to enter journal entry. So I'm going to say this journal entry is going to be as of the 28th. That's fine. I'm going to be debiting the general ledger account for the equipment. So let's see if we can find that. There it is, the equipment GL. And then that's going to be debited for, we're going to say 50,000 of the equipment that we are purchasing. The other side then going to a loan. It's going to be a note payable. Now we already have a note payable set up, but if we're financing another piece of equipment or another loan out there, we may want a separate loan for the separate piece of equipment. So I'm going to set up another loan, which is going to be 2520. So I'm going to call it 2520 and current portion of loan will keep the same name. So I'm going to make another account and I'm going to make this large so we can see it. This is going to be 2520 and it said current portion note payable. And then you might want like the last four digits of the loan number or something like that, the last couple digits. And I'm going to take away the current portion. I'm just going to call it note payable so that I have enough room. And then you could put like the last four digits of the loan number, tracking each loan separately so that you can easily tied out into the amortization table. I'm then going to say that this is going to be a current liability. So we're going to put it into the current section. And I'm going to say other current asset note that the loan should be other current liability, not an asset. I'm going to put it in there and keep it at other current assets. Then when we check the financial statements, it'll be wrong and I'll go back into the general ledger and we'll make that adjustment. So you can either put other current assets follow along with that process or you could put other current liability at this point in time, other current liability being the correct option. Now I'm going to put all the notes into the other current assets in one account so that we can easily pay make payments from the current asset to count and then break out the long term and short term portion periodically at the end of the month. So remember, that's my recommendation for basically the loans. If you have multiple loans, I wouldn't group them in one account, but rather have multiple accounts so that you can tie out the loans. I wouldn't have a short term and long term portion all the time broken out, but have them in one account so that you can then tie those loan payments into the amortization tables if you still choose breaking out short term and long term periodically at the end of month or a year for financial reporting purposes. So that's one way you could do it otherwise you could do that but we'll save this and say okay so there it is and then I need to pick up that loan amount so we put that in the 2520 so that's the note payable that's the one you could put in the description uh purchase of equipment for loan or something like that purchase and I misspelled purchase here purchase and then we may want to copy that so I could copy that and put that on both line items here and then this is going to be a credit of the 50 000 as well so there we have it let's go ahead and save this then close this out then go to our financial statements so we have once the balance sheet opened already so I'm going to go back up to the balance sheet and notice I put it in there as a as a current assets type of account which is wrong should be a liability type of account so let me go back back on over to our to our chart of accounts so I'm going to go into our data I'm going to go into I believe it's in the banking sections one way we can go there or I usually go to the lists lists and then I want to go to the chart of accounts and then I'm going to make this large I'm going to look for that uh account that I put in the assets section so it's here in the assets section and I want to make it a liability account so I'm going to double click on this item so it's in there as an other current asset instead of a liability so I'm going to say that this needs to be another current liability so like so and then let's save this and let's close this and let's close that and then let's go on back over to our balance sheet and refresh it should disappear from this side the equipment is going up if I double click on the equipment there we have the equipment for the 50 000 purchase if I double click on that takes us to our journal entry closing this back out closing this back out and if we go down to our note payable then uh double click on that and then go into the equipment account once again it's going to take us back to that journal entry that's going to be it for now let's get out of here