 This is where we are at. Now last time you will recall and if you don't recall we'll just kind of recap it so don't worry about it. We were down here in the liability area and we were talking about the fact that we had the short term and long term liabilities for the loans. So we had each of our loans. We wanted to break out on their own loan account for the internal reporting purposes and then we put each of those multiple loans under a parent account of loan payable. That works well internally because then I can tie each of those loans out to their respective amortization schedules and track them nicely and accordingly. But some of the loans might have a short term and long term portion as this second loan down here did which is necessary for external reporting purposes which might not be necessary for small businesses who are doing like a schedule C because they might not have the external reporting needs just needing the income statement for their tax preparation. But oftentimes you need to break out for external reporting on the balance sheet short term and long term. It's also useful to try to see if you can cover your current assets with your current liabilities. So we have to break that out. So we did that here with the adjusting entry for this particular loan having a short term portion of the 13108 which we could see here which is the sum of the next 12 12 reductions to the to the principal payment amounts not including the interest portion and then down here we got the long term amount which according to our amortization is where we will be which you could get to where we are now minus the short term or it's also this number where we will be after a year from the current point in time. So now the problem is well that's correct we got to be correct as of the cutoff date but the adjusting department can't stop there because now when I go back to the accounting department accounting side of things I've got this short term and long term portion I can't just tie out one loan balance to the amortization table every time I make a payment I would need to if I'm going to use this short term and long term method for this particular loan readjust the short term and long term portion that's way too tedious no one wants to do that that's why we have an adjusting entry process in the first place therefore we're going to reverse our adjusting entry to put everything back in one account as of the first day of the next period so that we can get things right as of the cutoff date and get things back to where they're right for the bookkeeping standpoint and the ease of data input for for the normal accounting process with the reversing entry after the cutoff date all right so let's go into this February just to look at the loan and see how we're going to reverse it if I go into it here there's the there's the adjusting entry we made and of course we could just reverse it entirely so you might even like take a screenshot of this and then paste it somewhere and then do the exact opposite of it now that I see that in the other way you could do it is with a with a register so so I'm going to close this back out since there's only two accounts affected let's use the register method