yo yo yo CPA strength here back with another video back with my classic
series can you believe it we're up to 93 counting for beginners number 93 of the
classic series hope everything's looking ok I haven't done one of these in a
while I had to look 92 to see what my setup was can you believe that
anyways let's let's let's get into this if you are new here there's a couple
things well thanks for being here if you're old here thanks for watching you
know if you could leave a like if you liked the video or you just leave it now
leave a comment really helps my channel and really fires me up to make more
videos first let me show you this playlist over here this is the best
playlists in the world this is the best accounting playlist in the world really
full of videos this has helped thousands of thousands of people so check this out
please if you want to support the channel watch the playlist share the
playlist share this channel I don't have anything for sale I'm just trying to
give away the knowledge help you pass the class here or or get a job or do do
do what you're doing really the framework the framework of everything is
why would I get a comment the other day it was beautiful common it was simply
complex method my method is simply complex DC ade ler if you don't know
what about DC a learn learn it if you're in accounting if you're trying to do
anything accounting it's so basic so you don't want to write this all time this
is this this I mean I do have a nice personality but this is why people watch
me so debit/credit acid draw expense liability equity revenue DCA blur this
is based off a question I got so thank you so much for giving me the question
probably the question was from a beginner I don't know maybe not the
questions are awesome I was like oh what a good question
like it really helps me I haven't done a video like this and it was just a good
question I'll sit down make the best video it's gonna help a lot of people so
if you have a question about something leave a comment I see all the comments
and I can see how this person who asked the question is you know is getting it
you don't just the accounting yes you kind of memorize the DC aid ler but then
you have to think about things so let's go let's go through this he said on the
video that this comment was on person left a person was to comment and I said
how does this how does this balance so the journal entry in question was I
believe we spent money on on rent or on an expense so I just have for this one
for illustration illustrative purposes spend 500 on a rent expense so our
journal entry for that would be we debit em we debit $500 rent and we credit $500
cash that's the journal entry we we had in the the the video in question which
the the awesome commenter commented on it was we had a debit we had a debit we
had a debit expense and we had a credit asset so and then he says and then he
said hey he said hey the balance sheet the balance sheets assets equal
liabilities plus equity I'm like yep that's awesome I mean this guy knows
more than some more than a lot so you know assets equal liabilities plus
equity that's the balance sheet
Devitt so is equal credits assets equal liabilities plus equity somebody said
hey if you have a debit expense and you have a credit of an asset if you have a
credit asset that means the assets decreasing in value so this would be up
over here this would be the positive side so if you have a asset decrease in
value would be a credit we have an asset decreasing in value so you would so he D
comment it was awesome comment didn't understand how if you have an asset
decrease in value then you would have to have a liability or equity also decrease
in value what a great question because yes
everything balances and yes and that's not making sense because one over the
liability and equity decreases well I do have a I do have a video on equity net
income retained earnings I think all those like around third thirty I think
or 29 I'm not sure it's an accounting for beginners playlist a part of equity
you know there's a whole bunch of different parts of assets different
different kinds of liabilities there's a whole bunch of different kinds of equity
one of the components of equity is net income and net net income is revenue
minus expenses and we had expenses reducing by five hundred dollars that's
how it comes into equal because we have on the left side assets we have less
than five hundred dollars and on the right side the liabilities and equity
side we have less than five hundred dollars so both both sides are going
down by five hundred the reason how a balance is is
because net income is a component of equity and it updates constantly on the
balance sheet so that is how it balances I thank you so much for watching this
video I like love doing these I worked all day went to the gym I was just
having the best time doing this video I know it's going to help some people that
makes me feel great yeah I'm gonna try to get you know I'm
not gonna forget I was talking to a friend today and it's like I was saying
you know I need to get more back just in the accounting videos and it's like
Yemen you get to the big show throwing fastballs and you're throwing change ups
all over the place so I'm always evolving but thanks thanks everyone
who's been watching and leaves me positive comment to how these videos
help you I've gained so much I've gained so much from making these videos anyways
tell tomorrow I'm out this is CPI strength juices