what's up everybody? Jonathan Dorn, CPA licensed CPA in state of Florida
this is going to be the last accounting tips for a little bit
we're, going to run through this last example, and show
you the the Balance Sheet
I'm no teacher, but i just wanted to kind of show how, DC/ADE/LER will work, and you
know i just keep on wanting to refer to the DC/ADE/LER if you don't know anything else
remember DC/ADE/LER, it helped me pass my CPA Exams
I struggled with this before I learned DC/ADE/LER and works, if someone sees a
hole or see something that doesn't work with DC/ADE/LER, you know ask me
so anyways, in the last time, I think this is a basic five,and number
four
we did we did very briefly Income Statement, now the only thing on the
Income Statement, the Income Statement is Expenses and Revenue
so, basically we had eight hundred dollars of revenue
- 500 of expense, so we've used these two already
and see, basically you have three hundred dollars.
so if you would put on DC/ADE/LER it would be 500 and 800 so that would be
300 credit
which you'll see where the 300 comes in it is a credit later anyways let's go to
the Balance Sheet with these Examples
all right, now i'm going to say, Income Statement $300
net income
all right, now of course we're going to write our DC/ADE/LER DC/ADE/LER
okay, with the Balance Sheet, Balance Sheet is Assets = Liabilities + Equity
that's the basic accounting equation always, so
Balance Sheet equals
Assets = Liabilities + Equity
now look, see this is basically an equal sign right ??
this is basically an equal sign, and these go together so it's, ADE/LER has the
basic accounting equation in it
so you're good on that
Balance Sheet: Assets = Liabilities + Equity
what are our Assets?? we've got cash and a truck
ok, let's do the cash first, this is a positive amount of cash
incoming, so you have 10,000 / outgoing cash / 5,000 so we get down to 5,000 cash / 4500
5300 cash / 5200 cash
so we've got
5200 cash
CASH !!! we got truck worth 5,000 / $5,000 truck
alright so our assets are ten thousand two hundred
and now that's going to have to equal, Liabilities and Equity
let's see
so we just used, this one, this one, this one, this one, this one, and this one
so let's see, the next page, what's our Liabilities?? This has
to equal. what are our liabilities? we have a ten-thousand-dollar loan on the
book. Going to check that ten-thousand-dollar loan
now, we gave a hundred dollars, that was a Draw
so this is this is our Liability 10,000 loan is our Liability. and now
we have plus
Equity, all right, now our Equity is going to be, see, the draw the hundred-dollar
Draw!!!! see, that kind of opposites the Equity. and we don't have any retained
earnings, because we just started, so we're going to have a negative a hundred
for Equity, and the net incomes factored in there, so that's why I want to have a
positive net income, so we are three dollar net income, so
$10,200 as Liabilities + Equity
same as the Assets
so anyways, I don't think I'm a very good teacher at all this, but I i really just
want to get the DC/ADE/LER in so please, just remember, Write it down on your paper
work with it, and it will help you !!!!!
good luck with everything, and whatever your goals are JUST NEVER GIVE UP
KEEP ON GOING FORWARD