yo yo yo welcome back and CPA strength you know what it is man if you don't
know what it is I happen to be the strongest licensed CPA in the state of
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you love it I'm loving it this happens to be number 80 oh chantho chantho rhino
cinta Oh Cho chanta see Oh chin to table anyways uh this is accounts receivable
this is also like seven or eight are widgets Inc I don't know what it is I
don't know what it is what it do what we got let's go this is descaler real spill
this has helped thousands upon thousands upon thousands of people by now probably
the tens of thousands I would have to guess I don't know get step-up and
elevate in their life whatever they're trying to do now we're gonna do a
journal entry we're gonna do a couch received but we haven't done accounts
receivable yet or into accounts receivable this is 831 so we're gonna
journal or every month we're gonna go journal entry so we're gonna go to
charge accounts general ledger balance sheet income statement let go let's do
it what's happening on August 31st 2034
2015 what happens is widget incorporated performs widget service for $10,000
we'll get paid later Wow no pay me later dog oh man what I'm working then you
know so that's uh that's the curveball it happens in business you know someone
calls you up and says hey um I I got a I need a widget that needs repaired I
heard you the best around your guys the best round will you come out I'm like
yes yes yes I'm already spending the money in my head you know up and uh you
know maybe maybe it's so great great great and you're like okay so you go out
there you're like hey it's gonna be 10k it's gonna be 10 Gesell's Oh fine
then you go then you go for your payment and they tell you oh I don't have it so
that's why you know it's always something so you gotta you know you
gotta set up if you got a ten thousand dollar job maybe you gotta get a draw or
you know you got to get like 20 percent upfront this whole side thing but
markers will shine through but I wanted to show you what so let's think if
you've done the last one and you've been following what happens and anything
you'll notice this happens to be the first journal entry that we don't have a
checking account in it so this is the first Euler to it we do not have a
checking account so I want you to see what accounts this actually plays with
and I think it's gonna be I think it's very fun once we get down to the balance
sheet income statement so let's just kind of hurry up and get there since
we've done I've done an accounts I've done I think two accounts receivable
videos just how I get the journal entries and and such and go over this
fast performs widget service for $10,000 all right well I know that that's what I
mainly do I know that's my main revenue a widget servicing so I a revenue going
up is a credit so I put widget service credit $10,000 and it's a revenue boom I
got my credit now for my debit I know it has to equal $10,000 sorry that's my
that's my 5:15 a.m. alarm I get up at 3 a.m. to come film one to two videos here
in my office and then that's my alarm to do other stuff because I after right
after filming this I'm going to the gym so what a blessed life right now I used
to know I used to hate my life and I try to think more positive sorta blessed
life right I wake up I come film I love filming it's one of my passions to make
these videos and then one of my other passions is to exercise and lift weights
and I am in shape even though I do get out of breath please I can run I can run
a mile run 2 miles at a time so stop with that nonsense anywho what a blessed
life right anyways you're not getting paid now
usually usually you get paid and it would be that would be the debit but in
place of that you're really getting an IOU which an IOU I'll pay I'll pay you
later you front somebody that's how I have to think about him and I fronted
somebody right yo
anyways I mean you know I love my totem pole rolls
he's vlogging now he's vlogging dog and so I I feel like the vlogs if you like
maybe the gyros vlogging so yeah he got him but I think in Brazilian way come on
let's go oh she and I are you see fronted somebody so that's an account
receivable $10,000 asset now let's go let's go to our chart of accounts
general logic board changing over the boards yo I know how that would slid up
there just felt good any what's the what's new on our chart of accounts
well we already had widget service we added accounts receivable now I'm not
really I'm not some when I learned you know everything's like a warden area
sakura-san fixed asset accounts receivable uh call you know seven
different kinds of assets seven different kinds of liabilities seven
different kinds of expenses cost of goods sold I found I didn't know where
everything was so I would rather just know that it's I would rather know I all
I want you to know right now is accounts receivables asset and I don't think
that's wrong what what kind of asset I don't know an asset man assets equal
liabilities plus equity for this point for a beginner that's what I think you
should know it's something coming in it's an IOU so that's that's what we
worked with new so that's our new account so in in our because we wages my
journal entry for it so in our sub sub action in our general ledger of our
of our of our account in our chart of accounts of accounts receivable 831 15
$10,000 so I mean hey and we'd have you know the person the company who owes us
in case more than one person owes us money okay we're gonna run with this
this is awesome so balance 831 balance sheet balance sheet is out a certain
date income statement is for a certain period our income statement is 0 115
date 3115 okay we got that assets equal liabilities plus equity
19,000 19,000 okay boom we're done hey I just wanted to kind of I didn't want to
go over that you can't just you know you have to delve deeper in to what is
what's involved in the $19,000 so let's first let's first just go over
what change in our balance sheet income statement that I applied that I want to
try to dump deeper into it so we had two different counts effectively however
accounts receivable affected which is an asset so it goes under here and then we
had a revenue account which is service be affected so let's go to our revenue
now we've made $22,000 this year in revenue you minus the expenses we have
thirteen thousand dollars of expenses total comprised of different expenses
and then revenue minus expenses net income and that's the deaths the debts
the income statement that comes out to nine thousand dollars you know we've
been toggling back and forth the net incomes the negative positive negative
positive and the net income carries over through to the balance sheet so we have
and so that's the only thing in our equity note because that's what the
company that's the company owns because that's that's that's all it owns right
now and it's in positive so that's good thank goodness because it's hard having
at negative it stinks stinky feeling right so have nine thousand dollars of
net and that's our equity okay well I can
see that now when I'm looking at the balance sheet I know and that's why
that's on top because I'd be looking on top of the balance sheet and I'd say oh
nine thousand dollars okay equity that's good and net incomes they've made nine
thousand dollars this year okay what else has been going on well they they
have a loan from a shareholder for ten thousand dollars so they owe the owner
or shareholder of the business I don't know any more than that really
but they know that ten thousand dollars so they owe some money $10,000 and they
have a net income of nine thousand dollars
so liabilities plus equity is $19,000 so now that means our assets
are going to equal $19,000 this is pretty good if you have 19 thousand
dollars in assets you must be doing really good well I mean yes but if
you're looking to it more what does that $19,000 comprised of okay now I mean the
big thing the liquid thing is the checking account $5,000 cash I mean no
one you can't go better than cash you know I mean King it's it's just you know
can you afford to buy this can you afford to wait for payment everything
you know that's why they say is it liquid you know tied up in something or
you'll see anything but you know when they say where's the bird bird in the
hand is worth two in the bush that's kind of I think meaning something like
this like you know I'd rather have I'd rather have 10,000 I'd rather have tenta
I'd rather I'd rather have five thousand dollars in my checking account than ten
thousand dollars out of you because I know those io u--'s don't come through
and they're just bullshit that's why I don't front anybody that's why stop
fronting everybody I think in the 90s I said no fronting policy boom so JD blaze
has a freakin zero fronting policy I don't want to hear it I have a zero
fronting policy in that that made my life easier
anyways yeah five thousand dollars checking account so that's dope
right you have a four thousand dollar truck that's nice you can see the truck
it's running you've been driving around widgets servicing and everywhere we need
to depreciate the letter so that's gonna be fun and then you have something from
somebody that says I'll pay you later ten thousand dollars oh I've got my car
insurance I mean your last two lists like if I have anything extra
I'll pay you and they never have anything extra whoo anyways um yeah so I
went to the balance sheet equals it was the balance sheet a little bit different
now but anyways assets equal liabilities
plus equity assets is $19,000 liabilities and equity is $19,000 you
know there's always so much more between uh behind the lines here and you know
not everyone not everyone can read a balance sheet income statement I mean I
have I know it's just that everybody's thing but you know there's really really
millet there's I know a couple I know like I don't know I know like three four
billionaires that have no idea how to read financial statements that's what
they have me for because they trust me and it's a good feeling it that these
six I guess cogs look successful I think if you have a lot of money you're
successful to me I don't that's what I that's what I think is success you know
in the world anyways uh I don't even know I hope you like this one I'll see
in the next one everything let's be positive as we positive don't hate you
can hate on me because you're just gonna hate on me inevitably