yo what up everybody?? Jonathan N. Dorn, CPA . You know the strongest CPA in the state of
Florida. today we are going to add an asset on your books. so, over here I have
a Balance Sheet. As it stands, before we had added anything on here. You know
that. ( Assets = Liabilities + Equity ) that's the basic accounting
equation. but anyways, all we have for Assets. keep it simple as
cash for $50,000. ok, total Assets $50,000 now, this is a typical Balance Sheet
( Assets = Liabilities + Equity ). so 50,000 total Assets. We have Liabilities a loan
from the shareholder. $10,000 The Equity, we have retained earnings 20,000 They
income 20,000 Total Liabilities and Equity 50,000 So, that's what we have on our
Balance Sheet So 50,000 and 50,000 now, we buy a truck, were gonna buy a truck for $30,000
so how do you put it on your books?? you know how do you get it on
there
well of course over here i have my DC/ADE/LER if you don't know what that is
watch my before videos, okay you know that, so right Debit/Credit Asset, Draw,
Expense, Liability, Equity, Revenue. Now
ok a truck
we're going to put a truck on the books. truck is an Asset
I think we all know that ok. it's something tangible we have
hopes of Depreciating, that can give us some income in the future for our business
but, you know, truck is an Asset, so we're getting, we're getting an asset,
we're going to put it over here. Truck, right, because we're
getting, is a plus positive side, so that's going to be our Debit. so our
Debit is going to be truck
30 thousand. ok, so now we need a Credit, ok now we're going to do two
different options for this. the first one, let's say you have cash
let's say you just paid cash out of business for thirty thousand so cash is
an Asset and you have lessened your cash by 30,000 so so this
so that's going to be our journal entry and would it match up here ???
well, we're going to have a truck your not even going to mess with Liabilities and Equity
your not gonna mess with that right now if you spend cash on the truck. because you're going
a truck for 30,000
your not going to have 50,000 cash. you have 20,000 50,000 = 50,000 ok !!!
probably, i would say more then likely
we keep this scenario going. is that you
borrowed a loan for so I know any of these scenarios we always have the truck
is a positive Asset that's going to Debit so so we're going to keep going to
keep this here but we're going to change the scenario here and not say we can
spend cash are going back to 50,000 here so it's gonna be 80 thousand alright
let's see how it's going to be 80,000 now your Credit we got a loan
um you owe some money so the Liability positive Liabilities of Credit so we're
going to have ummm, loan from shareholder. for 30,000 see
everything always has to equal. I love the accounting !!!!! see
Debits equal Credits and see now now we just had no going to add 30,000
to this so it's going to be 40,000 so now this is going to be 80,000 so
anyways that's how you would put an asset on the books. Watch the next video
We are going to Depreciate this Asset alright peace !!!!!!!!!!