what up what up what up everybody CPA strength back again strongest CPA
in Florida actually I'm the fattest CPA in the florida today we made myself at 270
pounds throwing about 15 pounds since Hannah taxis and fat boy and the beat
man see pH strength you back again what you doing man I'm doing accounting for
beginners this is my classic series y'all this is your first time you're
going to love it if you're back again I know what you're back again because it's
the best man if it's the first time here's the ooh there it is here's here's
the best YouTube accounting playlist in the world hands down in the world what
are you going to do today cpu strengths what are you going to do I want to do 35
now into accounting for beginners 35 and visibles A&B let's go let's go let's go
Ford is in the house boy Yi I'm gonna do coming for beginners 35 adjusting
entries I think this is the fifth one we've done with adjusting entries we've
done we did depreciation first then we did deferrals or prepaids when you
actually have an outlay of cash through did two of those the the last one we
just did was a crude revenue which accruing is no cash outlay 34 was a
crude revenue you have a revenue with no cash now this one here 35 that was back
here we are 35 hello 35 we're going accrued expense alright
great so we're doing a crude experience and I know you already have DC abler
debit card asset drugs friends liability re Ravenel I know you have that if
you're like what's he talking about go go watch the playlist and you'll love me
come back to this one come back in the future and tell me how much you love me
now okay cuz I'm gonna go back in time and tell you how much I love you what up
so I know you already have this on your paper now if you can't remember from
last time you've started writing career equals no - you're right in that
next in here along with other stuff that you can't remember every morning every
morning don't be lazy don't be lazy every morning write this on your paper
that's the thing everyone wants to be everyone's like Oh a year motivational
what you're inspirational I don't do it often flashy
I get up at 5:00 every morning and I start hustling and I start grinding and
sometimes I don't want to get up in the morning what gets me up the haters man
so don't be lazy write this if you can recruit write that on your piece paper
in the morning and get Adam in or whatever else you can't remember so a
crude expense now you know Noakes you've been writing down a crude equals no cash
should I already know you have a question you have to do a adjusting
journal entry on your homework or in part your class and it's a career in a
crude expense let's go with let's go with what the definition is this is a
definite shot of the book an expense that has been incurred but cash has not
been received so if you just read crude no cash and you see crude no expense
you'll see no cash I think about it okay if there's no cash so there's been no
payment what isn't what happened then she didn't do the work he didn't get the
payment and you've done nothing so there wouldn't be anything so for there to be
an accrued expense means there's no cash so what's happened it means you've
worked you've done the expense accrued no cash did work so I just write no cash
because I know the other half of that to make sense if you slow down means that
they've done the work they might they might give you a payroll example that's
what I found in my book so probably the example is gonna be you know we're gonna
do an expense and here's your summary of make a
journal on trip that's big interesting entry of out of here let's let's set the
mood turn your Tiger lights down a little bit
set the mood nice and soft nice and soft it's been a
stressful day forget about it cow gone away man all right you've got
payroll you got a little business the business has one employee gets a hundred
dollars a day can you deal yeah great all right so so a pair of Earl of
companies a hundred dollars of any Friday December 27 if you have a payday
you pay for that dancing of the day so Monday through Friday and you pay them
five hundred dollars right you paid them five hundred dollars on December 27th
payday so that would be jump cook boy on back
yeah you know what's up so that's five hundred dollars going out so this
journal entry would be a debit $500 salary expense credit yet because you
have cash a $500 casual evening expense is a is a debit positive so that's why
we'll go over here cash was leaving cat as an asset so negative negative will be
a credit so that's your journal entry here great now let's get to this problem
here now we're going to accrue what are we going to accrue well hey Tuesday
December 31st is the end of the year we need to get our books we we need to we
need to go tell our CPA remember is preparing our tax returns what the the
best representation of what's going on December 31st we need to get that
together so I need to make adjusted or not sure for a problem usually if your
bookkeeper you're going down line line item by line item and seeing does any
does any of these expenses or liabilities or whatever need to need to
be adjusted to be changed everything looked good let me run a Sally same as
last year let me look at last year's but so look we got that's Tuesday so two
days they've worked they've worked look so your employees
see your employee has worked two days you haven't paid them yet that's what's
going on with payroll on December 31st so we're going to write an adjusting
journal entry for December 31st right here okay now we're going to write an
adjusting journal entry for the for the salary for the payroll looks for the
salary expense so it's 282 days that they for work you
haven't paid I'm sorry I already know it's going to be $200 $200 debit always
always always equals equals equals to credit sorry you know $200 so look it's
already like half the problem right huh I got that amounts correct that's half a
problem and I'm getting cash not on how many cash so I do a just an entry it's
even accrual it even tells me no cash on my paper paying it okay that's okay I so
good so about $200 has have they work have
they worked has it been incurred yeah that's why it's include expense because
I spend suspend Curto recording it the cash hasn't been moved so they already
work they already work for two days for that expense line item on the income
statement for to be accurate it's going to be January 1st through January
through December 31st is the whole year that's the period for it to be accurate
we're going to have to have 200 all our salary expense because you you did have
people work for two days so we're going to turn our salary
expenses this is the adjusting entry here this right here is the adjusting
entry all right colonel are so expense what is
our credit gonna be marna what is our correct angry let's think about it if
this was normal and there was cash there would be there would just be cash here
on the cart just like in this one where they paid them but there's not so
there's no cash um that would be normal so there's no cash they'd worked we owe
them we owe them we owe somebody wages and so we are we're liable for some
wages and I think what's the what's the line item when we go to my chart of
accounts what's in my chart of account here is there anything on is there
anything on a credit side for a salary that I would oh so Wow oh so my that's a
liability I'm liable for something I owe somebody so that would be a liability
and all I'm looking at my chart of accounts on liability there's a wages
payable a payable that's like building so that's gonna be my credit to learn
our wages payable in summary for 35 adjusted entries accrued expenses its
crude is no cash and expenses ran curve and I recorded or receive so you've done
you've done someone's done the work head and got paid there's two hundred dollars
left over from payday when you are doing your December 31st adjust the entries
the way to signify that is $200 debit for salaries friends and then it's $200
credit for wages payable this is an expense over here hence the name and
this is a liability over there yo let me see how you defend your figure
I'll work on my glow sticks I used to a little place to go to the club it would
glow stick so home all right have fun till next time till 36 can you believe I
love doing you so much thank you very much mmm and you know what two more days
I will be back again because I'm mr. consistency alright i'll mr. blow up in
your face i'm mister they hate you but i'm mr. consistency above everything i
will see you for 36 the next day FB deuces