 then we'll deal with it when it comes around again next time and we'll just make an adjusting entry so we don't have to reverse it in that case as well but we're gonna reverse it here we're gonna say hey look let's reverse it so this doesn't mess up the accountant we put it on the books and we're gonna reverse it as of the first day of the of the next time period so that the accountant can just record this transaction the way they would normally do it all right so if I go back on over here and we could say let's go into the transaction we did last time I'm gonna go to the first tab here and I'm gonna go into that journal entry by going to the accounting and open up the balance sheet report and I'm gonna drill down on it so that we can see the actual journal entry that we put in place so I'm gonna enter here and then I'm gonna go into the interest the interest payable which is a liability down here where did I put it don't day there it is so there's the interest payable I'm gonna drill down on it to the source document which is of course a journal entry type of form and so then we can go into the journal entry let's drill down onto the journal entry and so here's the journal entry now if I wanted to adjust this I can hit the drop-down up top and say that we want to repeat reverse edit I'm gonna edit the transaction and I and I want to point out that normally when we did the adjusting entry are they have this reversing tab now it's disappeared they don't have it anymore but there's a reversing tab when you first enter the journal entry and so you could automatically reverse it when you put the entry in if it's a reversing entry which is pretty neat the other thing I want to point out here is that you might actually want to look at this transaction to see the debits and credits so that you can reverse it exactly now note when you reverse the transactions sometimes people get a little bit mixed up on on what the best way is to reverse it and let me just show you what I mean if I go over here and notice that by natural naturally for debits and credits I usually put the debit on top that's what you're supposed to do that's like the normal process but but if that if it's easier to see by putting the credit on top then my recommendation is that's what you should do so if I I'm gonna format this by going to the hometown format and make a skinny M and let's just do the same transaction we could say this is gonna be the same here debit credit let's format this black and white and center at home tab font or alignment center font black white let's center it alignment center and then what I'm gonna do instead of reversing it instead of saying I'm gonna put the debit on top like this or whatever and then like this that's still that's not too difficult to see that way because there's only two accounts affected but it's still a little bit jarring because usually we read from top to bottom right and if I'm trying to compare these two the easiest thing to do in the reversing entry is just to stay the same from top to bottom and then just reverse the debits and credits like that and so that's to me a whole lot easier to read than trying to read jigger reorganize you know the number of the accounts so that's what I'm gonna do so and so when I do the reversing entry that's what I'll do over here let's do another manual let's go into the manual journal which you can go here or you can go to the account in drop-down and reports and then we're gonna say this is gonna be the man the journal report and then we're gonna enter a manual journal with some manual labor right here hope make sure you're warmed up you've got you've worked out your muscles such you can this is gonna be a reversing one and one to get strained and then sue me because they pulled they pulled their muscle on their keyboard muscles let's go back on over to this is gonna be as of all reversing entries are the day after the cutoff so the cutoff for us is 228 all reversing entries are on March 1st now again this this confuses people a lot of the time so I'm just want to point out that you're gonna say hey look that the the payment doesn't happen until March 15th so it would be more correct you could be correct for 15 more days or closer to correct if you don't reverse it until March 15th because because you know that because that's when but we're not trying to be correct for every point in time we're trying to be as correct as we can as of the cutoff date and then on the reversing side I don't want the reversing side hanging out in the middle of the next period because then it's harder to locate and it confuses people so we want to reverse everything as of the same date the first date after the cutoff so we can easily see one day being the cutoff entries and the next day being the reversing entries sacrificing and being okay to sacrifice while doing that the fact that we're not making everything perfect for the middle of the of the time period in our case the month now notice here's that reversing entries so when I entered the adjusting entry I could have just hit the drop down and say reverse it and it would do this reversal for us which is cool but hard to see and there that's why we're doing it manually here so we can see exactly why we would do the reversing entry so the accounts that are going to be affected we were going to be debiting we're just reversing this one so interest expense so I'm gonna say interest X this is gonna be a credit now interest expense it's gonna be a credit so we put the credit on top and you're gonna say but that bothers me that bothers me but that's okay to get over it because it's easier to do it that way but my supervisor doesn't like it that okay then do what the supervisor wants otherwise they might destroy you or something but otherwise I think it's an easier and easier process and then we've got the interest payable here the loan and this is gonna be a debit so interest expense credit interest payable debit reversing entry let's post it and then check it out make sure it's on March 1st February January February March okay just making I had to say the months to make sure that that's the one after February February sometimes I get them mixed up even though I do this every day for crying out loud you get mixed up by I mean okay so we're gonna go down and then we can see the side-by-side for February we can actually let's add I'm thinking if I want to add a column let's add a column to our layout over here because that would be neat and I'm gonna add a column for the date of March let's add another column for March out here poor K no why not you know why not so there it is we added March let's let's update the layout and I'm gonna go ahead and save that so let's just save the customization as that same report so I think that should save it all right cool okay so now what was I doing if I go down then we can see now we've got the interest payable we put it on the books at 72 and then I took it off the books and I messed up by $3 did I not put the right dollar amount in let me fix it this is how you go in and fix it if you mess if you mess it up this is the reversing entry let's drill down on the reversing entry and let's let's edit that and put the proper dollar amount in which is seventy two ninety two seventy two point ninety two I don't even know what you did there how did you do that it's not even a dislexified thing you just did something just like a whatever like whatever dude I that's why we have the double-entry accounting system so we can check that the thing that you entered it right so let's go back down to the balance sheet again and check it out and then we'll scroll down and we can see now that we have the interest we put on the books and then we took it we took it off the books so so now we took it off the books for the first day after so if I go into the detail and we check out the detail here drill and down to the source docs this is going January through March perfect so we put it on on the books with a credit and then we took it off on the first day after even though the payment isn't actually happening