 So now, I'm going to record the transaction and I wanted to increase the loan. We're going to finance the loan here and the other side is going to go into the fixed asset account. Now the registers, remember that the register is the thing that many people are used to using with like the check-in account and they've seen this like register format which looks like the old checkbook registers. You can have a register for any balance sheet account, however, so if you need to enter a journal entry, sometimes the best way to do it or an easy way to do it is to use the register because you can still think of it as increases and decreases a little bit more easily sometimes rather than dealing with the debits and credits. So if I scroll down, you got a register for all the balance sheet accounts. Now I can choose either of the accounts involved because neither of them are income statement accounts. I need to choose a balance sheet account to work so I can go into either the loan payable balance sheet account or I can go into the equipment. I think it's usually easier to think about the thing that you're purchasing often times. So I'm going to go into the furniture and equipment account, the asset account and say that let's go into there and show the increase in it that for the purchase of the equipment that we financed. So I'm going to edit it. I'm not going to edit it. I'm going to go into the register and then in the dropdown, notice the only forms I have here for transfer or a journal entry. We're going to use a journal entry even though we're entering it in like a register format. So that's going to be that. I'm just going to say that it's going to be on let's say 022723 and journal entry number. That's fine. And then I'm just going to say it's for Bay B of a Bank of America. I'm going to add Bank of America. I'm going to say that it's going to be a vendor. I even know it's not really either because it's a bank that's financing us. So it's not like we're buying it from B of a, but if those are our choices, I'll do that. I'll stay alone for purchase of equipment. You might want to be more detailed in the memo as detailed as we can be because we want to know exactly what we purchased so that our accountant can put it on the amortization schedule as detailed as possible so that in the future when we sell it, we can determine what thing we sold. So not all of people do that are very specific and if you're not, it's one of those things that's not a big deal in the year that you buy it. You won't have a problem. It's going to be an increase by the way. It's going to be a problem in the year that you dispose or sell it and you don't know what you actually dispose on. You can't tie out what you disposed of to the amortization schedule or they're grouped together in like a package of like 20 computers and you just sold one of them or something or 20 forklifts on one line. You don't want that. You want them broken out so that when you sell them, you can see which one you sold and do the proper accounting at that time. So the other side's going to go to the Bank of America B of A, the loan account. There it is picking that one up. What happened? It's going to go to the loan, let's say loan payable B of A. That's the one I want. Okay. I think they got it. So that's it. So that's the one. Let's go ahead and save it. What's this going to do? It's going to increase the equipment. The other side's going to go to the loan. Let's save it and see if that is indeed the case. We're going to go back on over here and we'll run it, run it, and then down below. Nothing happened to the cash, but we have the furniture and equipment go up. So if I go into that, notice we've entered two months of data input, very little activity in the furniture and equipment account. That's what's going to happen in fixed assets. That's a good thing because it allows you then to give that detailed information that those few purchases and disposals, if you had any, to your accountant so that they can then populate those into the tax software producing the amortization schedules and hopefully being able to help you or make any of the adjusting entries for accumulated depreciation. But when you give them this information, you might give them the sub ledger and you might want more detail than just it was a journal entry. You want something more like this, right? I got sofas. I got chairs. I got office equipment. I bought three forklifts or whatever. Here are the numbers of them. Here's how I can tie out what's on this schedule exactly to what's on my books. Not because it's a problem for me to figure out this year's taxes, but because it will be a problem if I can't figure it out in future years when I dispose of or sell of one piece of equipment. Okay, I've emphasized that enough, but still, it's kind of annoying when that when you hit it, it could cause problems, okay? So I'm saying. And then down here, we've got this collapsing of the loans payable can be collapsed to one for external reporting. Then we've got our two loans broken out in here, which is great. And we can break out the short term and long term portion according to the amortization schedules periodically at the end of the month or year and then reverse the entries back into one account so that it's easier for bookkeeping, which we'll do in future courses or sections on the adjusting entry process. So that looks good. Let's go into that. It's a journal entry, entered with a journal entry. If I go into the actual journal entry, doesn't take us to the register that we use to do the entry, but it gives us the debits and credits, the journal form, the default form, the last form to fall back on for QuickBooks if no other form will fit. Closing this back out and scrolling back up and back to the report, nothing happened to the income statement. When will stuff happen to the income statement? Why didn't anything happen to the income statement? Is it because we didn't pay cash? No, even if we paid cash, nothing would have happened to the income statement. When is stuff going to happen to the income statement when we depreciate the equipment allocating the cost to the period and time that we used it in order to generate revenue in accordance with the accrual matching principle? It's just an estimate. However, it's not a perfect thing. That's why we use depreciation instead of like equipment expense.