yo yo yo what's the business huh you know what it is man it's my classic
series AFB number 29 she know about that huh welcome back if you don't know
my name is CPA strength I am strong a CPA in Florida certified public
accountant a FB number 29 what's it all about huh we're going to do today we're
going to do liabilities CPAs trains going to do liabilities change for
beginners number 29 have liabilities what are liabilities I want to get into
that first let's say the balance sheet bass guitar equation assets equal
liabilities plus equity this is the mainstay of I would say accounting it's
the basic equation it's the balance sheet the most important financial
statement as far as I'm concerned so today we are concerned with the
liabilities let's assume that maybe you're taking this on a test or
something or taking a quiz obviously you already have DC abler written down then
from that you put debit credit asset draw expense liability equity revenue
normal balances positive balances today we're going to look at liabilities also
the DCA law it does have the balance sheet in it assets equal liabilities
plus equity and we know these equal right here so assets equal liabilities
plus equity so balance sheet here so these Sadler has the balance sheet
businesses want to make money of course everyone wants some chippers a rich
person be like money is not everything oh okay
try not having any money try being homeless and seeing if money and
everything okay then let's go to the definition in the book and this actually
this actually does make some sense to me definition of liabilities
and in the accounting book is debts owed to outsiders liabilities are debts owed
to outsiders in my head I think I'm liable for this it's on me I'm liable so
you just gotta think you don't know liabilities are debts owed to outsiders
all right let's just go over some common some common liabilities and then you
would think if it's a debt owed to outsider all these liabilities if
they're going up would go right here would be a credit on a journal entry and
on the spot let's start loan from shareholder when I started Doron Dorn
CPA a shareholder moi Jonathan Dorn loan loan Dorn CPA money
so I loaned it I loaned it ten thousand dollars so I had ten thousand dollars in
here ten thousand dollars cash I loaned it loan from shareholder saying this is
always going to equal so if you have ten thousand dollars in assets do you owe it
to somebody or does the business on it that's basically what it is
so loan from shareholder I own it the journal entry debit debit cash credit
loan from shareholder for that one as I say no this is kind of kind of a hack
for liabilities is if you see it I could be wrong I'm sure I am if you see a
payable somewhere wherever you're doing your exam homework in passing a payable
accounts payable wages payable taxes payable something payable payable that
means I owe it to you oh it I am liable for it payable it's a
I own to an outsider so if you see a table it's a liability dc-8 Lerner right
here positive credit boom count stable I get a bunch of merchandise I got a bunch
of widgets I got widgets out the door and I say oh ho I sell the widgets yeah
man I'm gonna pay you later payable accounts payable yeah so I got a bunch
of widgets ain't Hatem yet is it a den Oh down centers yes it is
boom alone from shareholder wages payable table you know it's liabilities
are payable boy let's see you know how people get paid every other week lot of
times which I call bi-weekly but by means two so with not being twice a week
come on Dawg are you doing your books every month the end of the month there's
people who haven't got a paycheck yet like maybe the end of the month lands on
a Wednesday so you haven't paid these people for three days anyway they've
worked for you and you owe them money wages payable someone's work for you but
you haven't given their money so it's payable so yeah it's downed outside or
yeah your employee tax is payable like a sales tax so the end of the month you
you figure out oh I old I owe the state for sales tax $500 or when you make the
sale you owe them but now they give you you have to figure it out and they give
you a couple weeks to pay them because you're kind of always working behind in
accounting but anyways the the gist I guess of it is taxes payable you figure
it out you owe the state taxes you haven't paid them yet it's a debt to the
outsider now look this one doesn't say payable but I guess what
councillor wage payroll taxes payable payable payable payable payable payable
payable table unearned revenue it doesn't have a
payable in there but think about it the book examples like a magazine
subscription you know outdated that is who has a
magazine subscription here like parole oh I would say basically unearned
revenue is just just slow down for a second please people unearned unearned I
did not earn revenue I did not earn the revenue I didn't earn it but that means
I have it yes are in revenue means I have the money right and do the work for
it so it's kind if I still owe somebody some diner oh I don't know the money
I own the work so I still I'm liable to an outsider for something so yeah checks
out liabilities is not that good it's what you owe somebody do you owe
somebody I guess money or work reliability hmm you know seems like I
think intuitively I don't get many questions on liabilities I'm not sure
why but it's just it's an it's integra tetryl to what i'm doing here is we're
going assets equal liabilities plus equity thanks for watching this is CP h
strengths strongest CPA in Florida I'm the biggest person on consistency
consistency consistency consistency I don't really go crazy and do a lot in a
day but I do a little bit every day for years lifting weights every day
practically for four years accounting I do a little bit of accounting every day
for like ten years now if you never start you'll never get there if you do
if you do a little bit if you take a couple steps if you take a couple steps
every day for ten years imagine how far you'll be in ten years
our juices