 the interest we put on the books, and then we took it off the books. 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, drilling down to the source docs, this is going January through March, perfect. So we put it 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 until the middle of March. And then when the payment happens in the middle of the March it'll look like this. They can just do the normal journal entry and not have to deal with the fact that that payable is on the books, because if I look at the balance sheet now, the books look like what the bookkeeper, if we think of the bookkeeper as being separate than the adjusting department is doing, right? The bookkeeper is saying, okay, I don't have any interest payable messing me up, whatever. And so if I go to the tab to the right and update it here, let's add another column for February again, because that's cool to do. I'm gonna edit this thing and add another column, another column, date column, and this is gonna be March. I mean, we already have February, this is March. Adding March and let's customize that and let's save the customization. So we have it there next time as well. All right, so now we can say that we have interest down here. So we had interest recorded and then we reversed it. Now, this should look kind of funny here because this is actually an increase. This is increasing net income. And it should be, it's down here, it's not an expense, it's kind of flip because this is the other income and expense area. So this is actually looking, it's acting like revenue and it's an expense. So that shouldn't be, that shouldn't be the case. That will look funny and notice the accountant, if you do this, the accounting department will say that, what did you do? There's something that looks funny there because now I've got this thing hanging out there. But if they record the normal transaction as of April, April, it will be correct. Meaning, for example, once we hit this point where they're gonna record this transaction, what are they gonna record? They're gonna record a debit to interest expense of 145.83. When they do that, it will net out against this amount to give us the proper amount recorded in the second month, which is 72.92. So it will then properly break out and between the two periods, if we use this method without having to change the method of what the accounting department is doing when they record the transactions. But you have to kind of understand that so that when people ask you why is that there, then you can kind of explain, well, that's the adjusting entry. It's gonna make sense after you do the entry at the end of, or when the next payment is due, March 15th in this case. So now you can see what happened is we recorded the manual entry that put it on the books. We can't see the manual entry because this is just March. Let's bring this back to Feb. Feb, we can do just Feb 28. So then we can see, we put it on the books before the cutoff date. So now we recorded the proper interest expense and then we reversed it after the cutoff date so that we can make the financial statements as a Feb 28, the cutoff date. And then after we reversed it, which results in, if we run a report just for March, something that's not quite right, right? Feb 27, you're showing like a negative expense account as of just the month of March. But it will be correct when they record their normal journal entry, in this case in the middle of the month on March 15th and they record the full amount of the interest expense, 145.83 because it'll net out to half of it being recorded in March, right? That's the idea of it. Okay, that's what the reversing entries do. They're an attempt not to mess up the bookkeeping department so that you can do your adjusting entries and tweak everything to be perfect as of the cutoff date for financial reporting purposes, either for external reporting or for taxes and still not mess up the bookkeeper as they move forward with their internal reporting purposes. All right, so let's now open up our reports. Let's look at the journal report. I'm gonna right click and duplicate and let's open up a journal report to see the journal entries we've been creating thus far. I'm gonna go to the accounting dropdown reports and open up a journal, the journal report. This is my journal of activities. Some people like to write it down, write their journal with like prose text, but this is what our journal looks like. Add a new journal, well, no, I'm not adding a journal, what are you doing? What are you doing? We're looking at the report here and let's make this as of the date, custom range and let's make it as of March 1st. So we had a reversing entry as of March 1st, boom. And so now we can see our reversing entry. It's a manual journal entry. We can also say that we just wanna see the manual entries up top and so we can see just our reversing entry there and we can generate this report and remember the reversing entries can be identified because they're always gonna be the day after the adjusting entry, the day after the cutoff, the day after 228, which is in our case March 1st because there'll be journal entries and because there'll be manual journal entries and because we're gonna post in the description that this is a reversing entry. All right, let's also open up a trial balance. I'm gonna hit the dropdown up top and I'm gonna go down to the reports again. Now I'm gonna make the trial balance for the whole year this time because this is the reversing entries are included in March. So we changed something after 228 after the cutoff date. So let's go to the dropdown and just say, we'll just say custom 2023, the end of it. I'm just gonna say the whole year. And so this is where we stand. If your numbers tie up to these numbers, great, if they don't, then the things that we changed this time were of course the payable account. And where is that payable account? Where's the pay, it's gone now because we made it down to zero and then the interest expense account. Those are the things that we had a change to and remember it's not a change as of 228. We made it after 228. That's why we're running the report for the year.