never adjust your handbrake at the hand brake.. always adjust it at the rear brakes.. the 86's and most toyota drum breaks have a self adjusting mechinism.. but over time they get stuck.. if you take a look at the back of the drum.. you will see an oval rubber bung.. remove.. there is a little star wheel in there you can turn with a screw driver.. it can only go 1 way without pulling the lock tab thing.. but thats not to worry about..
just give it a few clicks.. turn the wheel.. still turns freely.. etc.. repeat to the other side.. and test hand brake... keep repeating this for both side till your happy.. but try not to over tighten.. and have the wheels drag.. pain in the arse to back them off..