what's good YouTube?? CPA Strength here
Jonathan Dorn CPA licensed CPA in the state of Florida
Leeegggoooo !!! Basic Accounting Tips
tres, a little español, anyways let's just get into it
this is tres, so watch one and two
if you're wondering about this stuff cause this isn't going to make too much sense if
you haven't watched one and two, ok let go
ok so what's the first thing you're going to do, every time if you can't
remember anything else on test anything anything anything you're going to have
to remember
DC/ADE/LER ok and that'll get you through that I get your CPA
I don't know nothin else and i got CPA license, I know a couple
more things but lets go
ok so DC/ADE/LER
all right we're going to do some journal entries today
ok so this is what you're going to write and look, this is a + see this is
the plus 2 so you are all positive these are on positive sides the Debits and
Credits ok so what's the first thing you're going to do first thing is a
ten-thousand-dollar loan from the bank
ok so you're going to have to have at least at least the Debit at least the
Credit and they're going to have to equal
we're gonna have to match. so I like to work most journal entries have
cash in them, so I like to I like to work with the cash first if you know what the
cash is doing
then you're about halfway there are a lot of times
no this'll if you know what the cash is doing
you might you just you know get a 75 grading on a paper or something, so anyways
ten thousand dollar loan from bank
ok, ten thousand dollar loan. so you have positive cash, positive cash which is an
Asset
so here you have your ten-thousand-dollar ten thousand dollars
that are getting in cash right here
so that's the Debit right?
that's the Debit!! so here
Here Write
Here Write Cash Ten
Thousand, Debits to the left hand side ok, so now you've got ten thousand
dollars or did you get
where'd you get that from? A loan.
you owe the bank that's a payable, that's going to be a liability
but t's either going to be a liability or equity you really don't touch this too much
unless it's like the end of the year retained earnings
so you know, if you don't know anything
you've already got your cash, you know the other side, you know the Debits
10,000 / you know the Credits has to be 10,000
so is it Revenue ? did you work to make the ten thousand
dollars? No, you got a loan
it's a payable is a Liability of yours you're liable for that ten thousand
dollars
so here we go, ten thousand dollars here, do these equal?
yes they do!!! So, you're going to have a loan Liability, going to put loan that's
going to your Credit. LOAN
ten thousand dollars well there's your first journal entry
do you like it, do you love it, do you want some more of it, Timmy MgGraw
don't mention Memphis
and anyways second one ok let's erase this here
let's erase this now
see now this one might throw you off that's it
but these are the positive sides these are positive that positive Debits
positive credits so let's go to the second one
ok, buy a truck for five thousand dollars
you're buying a truck for five thousand dollars. Are you getting more money? or
Are you getting less money?? buying a truck here.
here's my here you take money, I get truck
so, your money is leaving, your money is leaving. So, Asset
cash is an Asset, but it's leaving
so that's going to be your Credit is going to be cash, cash is going to be
your Credit of 5,000. So that's going to be our Credit here
so you know that, so let's just write down our journal entry here.
we're going to write
Cash 5000
because it's leaving !!!!
and so here,
so you take money
I get truck give me truck
give me a freakin truck so i have the truck so where's the truck, trucks an
Asset positive your gain getting more so positive Asset so there we go there we
go
a five-thousand-dollar truck
is it equal? yeah, so it's Debit
we're going to Debit five-thousand-dollar truck
truck
five thousand dollars we got one
we got two. BOOM !!!
easy peasy lemon squeezy right come on let's go
Man this is fun, this is fun
I love this shit, alright number three the third transaction third
journal entry you pay rent five hundred dollars
ok here here's five hundred dollars i get my rent
I get to stay here ok so that's an Expense
it's something that I'm paying out in the hopes of making money for my
business so it's an Expense
all right first of all let's go
ADE LER
let's go with the money let's go with the money let's keep it simple
i'm giving you five hundred dollars so
ok now i have less cash
I have less money so that means the Asset we have less cash cash is an Asset
we have a negative amount so that's going to be a Credit
so yeah we're going to have cash for five hundred dollars
so let's
let's just write our Credit right now
cash - five hundred dollars
ok so now we need to match up when you match up at five hundred dollars ugh hmm as
a Debit
so what are we going to do how we're going to do that how we're going to how
we're going to put that, is rent an Asset? NO. Is rent a Draw? A
Distribution?
no rent is an Expense it has to be one of these
so you've narrowed it down a little bit you know rent is an Expense
so here $500
$500 for rent
so let's bring the Debit over here
rent $500 DC/ADE/LER
all right number 4, you get paid for a service, you get paid three hundred
dollars for some work you did
oh my god i'm actually getting money in holy holy jeepers right yet you're
getting money in
so what is that what is cash coming in positive cash positive asset left hand
side ADE
here we are three hundred dollars coming in for service you did so
$300 with service coming in the asset you got cash coming in positive amount so that's
the Debit three hundred dollars and how did you make it? is a Liability? do you owe
somebody? is it retained earnings? or in Equity NO
it's a Revenue you worked for it Revenue service income so we're going to do up
$300
cash because we got cash coming in so that's a debit 300, get my fat head
out of the way
300
oh we're going to put income went with service in come on the what
how do we get that for service of service income gonna be around new
service income
Service income, 300, these all matchup, DEBITS = CREDITS / DEBITS = CREDITS
DEBITS = CREDITS ADE/LER
ok positive side last one guy goes to the ATM takes out a $100 spends it takes
takes a date out spend $100 for personal
so now so you got to think this get kind of tricky but you got to think as we're
doing this as a business
ok so you you take a hundred dollars out of the business
so you have negative cash
so that's going to be a Credit so you have negative cash because you have cash
coming out of the Account so we're going to have a cash of a hundred dollars of
cash is $100, cash is a Credit and now what is the start
what is the Debit on this? is it Expense?
NO. because it's not in the hopes of making making money for the business of
not an Expense
you took something personal is that an asset? spending $100 that's not an
Asset
now it's a Distribution or Draw because you personally took it out
so
we're going to say we're going to put Draw one hundred dollars
anyways this one is. CHRIST!!!!13 minutes and i'm going to have freaking watch this
if you made it this long, and like if you got any questions for you can put him
down there asking a freaking question i'm no teacher
I know one thing though DC/ADE/LER
all right, the strongest CPA in Florida
BOOM!!!!!!!!!!!!!