yo what up? CPA Strength, strongest CPA in the state of Florida, another video
here obviously, gonna be about journal entries just a quick journal entry example.
i do too many examples in one video sometimes. we're going to do one example here, its going to
be a journal entry, i think a fairly simple one, and it's gonna involve cash,
now in my opinion, if you know what happens with the cash of the business
whether it's a Debit or Credit, you know you're going to have half your journal
entry done, also, $300 dollars spent at comcast,
you're doing your homework at night.
you've got, you've got a task. Complete this Journal Entry. You don't know anything
oh yeah, oh yeah, we can do, we can do, DC/ADE/LER
I didn't remember anything else, besides DC/ADE/LER what does that mean??? it means
there's a Debit and a Credit ( DC ) and then ADE/LER Asset Draw Expense
Liability Equity Revenue, first thing $300 spent at Comcast, ok so we have money
deal with the money first, because most transactions are going to have money, as
you know from the previous videos look at the other videos Cash in it's
positive form, we don't have that we're spending three hundred dollars, i don't
care for what, or why at this point, we're just going to do the cash first.
so, $300 is leaving our bank account, leaving our business, so that
means cash in a negative amount, that means we would credit the cash,
it's a negative asset to our bank, is a credit to the cash, so, so look right here,
is our Credit, three-hundred-dollar cash that is our Credit !!!!
why is it a Credit??? because negative cash, cash leaving our business is a negative
Asset, is Credited so and we have $300 leaving, so it's going to be Credited
so what's our Debit? Whats our Debit for this?? This is going to be Debits &
Credits, so three-hundred-dollar cash, is our Credit
so whats going to be our Debit, we can say three hundred dollars. we spent $300
at comcast for internet, now thats at your business, why did you
spend the money???
$300 because i need Internet
to do, whatever, everybody needs the Internet, to try to produce
revenue, or make money for my business, so it's an Expense, what Expense is??
we're just going to say Comcast's. like that's a chart of accounts, but that's
later on, so there is kind of how I have it, so look here's the journal entry, Debited
$300 comcast, Credited $300 cash, Debit comcast, , that's an expense, so
that's going to be in the debit column we're going to Credit cash,
that's an asset leaving, with this, this would be a journal entry, we would have a
date here, it was like 8 /15/ 16 so you have a date, Debit is always to the left.
and then your credit is is the right-hand side, anyways just example it
just takes practice practice practice practice practice
don't even know how many times but when you do it so much you don't even
think about left foot, right foot, left foot, right foot, you just do
i used to play baseball, hit off a tee, thousand cut like thousands and thousands and
thousands and thousands of cuts, and then people are like "you got a pretty nice baseball swing"
Yeah, i been practicing. man. I've been doing this for about eight
years
learn accounting and stuff, and I am a CPA now, but you know when I first
started, something like this, I wouldn't know what to do, i would have throw my book against
the wall
I just didn't know it, i just didn't know the DC/ADE/LER really, so It was hindering me.
now when i see, this ii see the debit, I see the debit as the
expense, to see the credit as cash leaving, I just kind of got it, but you
you gotta get the basics before you do anything else.
thank you very much for watching. I really do appreciate I I I can't believe
all the subscribers and positiveness on my channel !!!!!!!! so i really thank you for
watching PEACE !!!!!!!