 In this presentation, we will record a transaction to consolidate two loans into one loan account. In other words, we have two loans on the books and separate loan accounts. We're going to say that we consolidated that loan and therefore need to bring that loan into one loan balance. Let's get started with Sage 50 cloud accounting. Here we are in our get great guitars file. Our objective is to combine two accounts into one account. Let's take a look at that with our financial statements. We're going to go to the reports. We're going to take a look at the financial statements. I went into the GL, but I was looking for the financial statements here. And then we want to take a look at the balance sheet report. Let's open up that balance sheet report. Going to be taking the date range going to say range for January and then say, okay, there is our report. We're looking down here on the liability section. We have two loans. We have the 22,000 and the 50,000. We would like to consolidate those into one loan. We're going to say now we have one loan, which is the 72,000 that we want within it. This is going to be a transaction that's not a normal or everyday type of transaction. It's not something that happens every day and therefore we don't see a normal form for it in our normal flow charts. In other words, most types of transactions, if they're going to be something that's repetitive, if I bounce back over here to our customer and sales section, it'll be part of a flow chart system and it will then include forms within it to make the data input for them more easy. If we don't have something that's going to be in that system, then we might think, well, is cash involved? The next thing we would go through, well, is cash involved? If cash is involved, I can use a form related to a cash payment or possibly the register. However, no cash is involved here. We're just consolidating two loans. So this is one of those types of transactions that we're going to have to go to the actual journal entry. We're going to go down to the bare bones, the journal entry in order to record it. So to do so, I'm going to go to the tasks up top. We're going to go down to the journal entry. So we want a general journal entry here. And then I'm going to make this large. We're going to say the date. I'm going to put this in there as of 020110. And then the GL accounts we're going to have selecting the dropdown. We're looking for those loan accounts, which are going to be a liability accounts. So within the liability accounts, we have these two loans. So there's the 5795, 5795. And it's just a matter of which one do we want to put into which one here. So let's take a look at it. The 5795, let's increase that one by the 50,000. So I'm going to increase it by the 50,000 and then remove the other loan. So we're going to increase it. I'm going to credit it by the 50,000. So I'm going to put the credit on top. Hopefully that doesn't bother anybody too badly. And then so we're going to put it into that loan. And then the other loan, which is going to be 25 account number 25 something 2510. We're going to decrease by that 50,000 with a debit. So this is going to be, we could put consolidate loans, something like that for the description. We're going to have, all right, let me just make sure that decrease the 2510 account, which is going to be the loan number 3417. So 3417, that loan is going to be going down by 50 and it's going to be consolidated into the other account. That looks good. Let's go ahead and say, save this. Let's save this and then close this back out. Take a look at our financial statement. Now we're back to the balance sheet. It refreshed for me automatically. But if it does not, you could select the refresh button up top. Then we're going to go back down, take a look at our loans. Now it didn't adjust because I'm in January here. So I'm going to adjust my dates. So I'm going to go to the options. I'm still living in January and we should be in February now. So I'm going to say February 1 to February 29. And now let's take a look at it and we should have a consolidation. So there's the 72,000. If I double click on that, there it is. If I was to double click on this transaction, we would then have our journal entry closing this back out and closing this back out. Notice we don't see the other count because it is now zero. If we wanted to see it so that we could see the activity from it, we can go to the options up top and say I would like to show the zero amounts so that I can then zoom into it and double check the transaction. So there it is. There's the other account. If we zoom into that transaction, then we could see that it is there's our transaction bringing it back down to zero. So I'm going to close this back out. That's going to be it for now. Let's get out of here.