 the month so that we can see two payments and see how they are different and recognize the issue that happens because of that when we try to automate this transaction. So let's do this one first, simple transaction. We're gonna go to the first tab. I'm gonna select the plus button and we'll just use a, let's use a check form. We could use an expense or a check form. I'll use a check form. All right, so we're gonna say this is, let's say the loan is with Chase. So I'm gonna put Chase in here just as a bank and this is actually gonna be a vendor. So I'm gonna say Chase Vendor because I have a customer, but I wanna make it a vendor. And I'm gonna say, there it is. I'm gonna say save it. And we're gonna go from the bank account. So we'll pay it out of the bank account. That makes sense. So we're gonna say that this is gonna happen as of the new month. So I'll say the beginning of the month. We're gonna imagine that first payment went out in February. The check number actually should be the 16th or 1016, because I want that to match what's on my bank statements. And I think that's what's on the bank statement that should populate automatically once we're in sync. But I think we made an adjustment to it in a prior presentation, so it's a little off. All right, so this is the first transaction that has two accounts impacted down below. The first thing that might come to mind is the loan payable account because that's what we're paying off. Loan payable. So we're gonna say loan payable amount but it's not gonna go down by the full amount that we're paying. So if I then look at what I'm gonna pay, it's 1-3-5-8-73, but the loan payable is only gonna be going down by the 1-0-5-8-7-3 because interest has to be recorded. So now we have two accounts impacted, which we haven't seen too often. So it's 1-0-5-8-7-3, I think if I remember that. And then the other side is gonna go to interest. So the other side is gonna be interest. And notice I'm gonna look for the account that they have. Do they have an interest account? They have interest paid. I don't really like that term because it kind of indicates that you paid the interest, meaning you're like on a cash-based system. It's possible to have interest that hasn't been incurred that you have not yet paid. So I'd rather just have it called interest expense. But I'm not gonna make another account called interest expense. Instead, I'll possibly change this account. If I made another account, that could cause problems because then I have two accounts that have a similar name. So I'm gonna say I'm gonna use that account and then possibly change the name of it because I don't like that name as much. And then I'm gonna say the other, the interest is $300, so 300 to interest. And that gives me a total of the 1-3-5-8-7-3. So 1-3-5-8-7-3. So what's this transaction going to do? It's a check, it's gonna decrease the checking account by the full amount, 1-3-5-8-7-3. But the other side goes to two accounts, one of them being interest, $300, because that's similar to paying the rent on an office building. We're paying the rent on the use of the loan balance and the rest of it isn't going to rent on the use of the loan balance, but actually giving back part of the office building in that analogy, right? We're giving a room back. We're giving part of the loan back, the reduction of the principal that has not yet, you know, okay, so that's the idea. Let's do it, let's save it and close it and then check it out. And so I'm gonna go to the balance sheet now and we'll scroll up and run it. And then of course if I go into the checking account, by the way, I wanted to get into the practice of me breaking this account out by, I'm in month two, so let's change the range. I'm still on the old range, 0-28-24, sorry about that. Let's go month by month and break it out month by month. Get your head in the game. You were in February now. You're living in the past, man. You're living in the past. So if I go in here in February, then there's our check. So that's the full amount of the check, all right? And then go back up. And then let's go to the profit and loss and change the range again. Go to 0-28-24, I stay in the present. I'm mindful of the present time that's practicing my mindfulness to be in the, I don't know what I'm talking about. So interest paid. There's the interest. So the interest in February now, so we have a loss of course on the income statement. So that's the idea, pretty simple transaction, but it's difficult to save that transaction given the fact that the next balance that we have, let's make it green, will not be exactly the same even though the dollar amount is the same. So the dollar amount is the same, that the accounts impacted will be the same, but the interest and the loan reduction will differ making it difficult to memorize the transaction. So let's record this one. Now I'm gonna record this at the end of the same month so that we have them both in the same month. Normally they would be in different months, but we're gonna imagine it's a month apart but they happen to both payments happen to be made in February just so we can see them in the same month side by side. So let's do that. I'm gonna go to the first tab and I'm gonna do this again, a plus button and we'll make another expense form and it's gonna go to chase again, chase, chase, vendor, and then I'm gonna say this happens on 022824. So we're jumping forward in time, but we're doing so so we can make a direct comparison of these two items. If I select the category drop down, well actually wait a sec, I don't wanna make an expense form, I wanna make another check form. I'm gonna close that back out. Do you wanna leave it out saving? Yes, we'll make it a check form because I was using checked same form, but I wanna use the check numbers. You're confusing people, I know. I know, I'm sorry. Editor, cut that one out, just kidding. 022824, we'll survive. So we're going 1017 and notice it memorized the last transaction. Great, the account's perfect, but the amounts are different, that's the problem. So now I have to go in here and if it was a bank feed that I waited till it cleared the bank, I have the similar issue. I can't just memorize the transaction because these two amounts will keep on being different. And so I won't be able to just automatically put the bank feeds on and automatically just do this. I always have to go back to the amortization table and then say, well, the interest is, well, let's do the principle 106-314. So this now has to be 106-3.14 and then the interest is now 29559. So 29559, and that still comes out to 135873, same amount that we're paying, but that breakout differs, messing up the whole thing. So you could try to memorize transactions or prerecord the transactions and record them at a future time according to the amortization table or something like that. But like I said, it's not as easy to just automate the transactions that would come through the bank feed as you would with like a telephone bill where you're just saying, if I paid Verizon, just put it to the telephone expense. So what's this gonna do? It's gonna do the same thing. It's a check. It's gonna decrease the checking account by the same amount, 135873 at the end of the month. But the loan balance is now gonna go down by 106-314 and the interest, instead of $300, the rent that we're paying on the bank feed,