yo yo what up what up CPA strength strongest CPA in Florida for sure what
up welcome back AFB accounting for beginners the motherfuck motherfreakin
classic series is what we got up in this biz
number 25 quarter century you know how it is 25 all right
I was like oh just press record bro Brad just press record okay thanks for
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I'm concerned I'm a little biased maybe but getting dragged boy then juicy boy
inject okay alright if you just watch if you just
watched 24 this is kind of a continuation does the transaction
increase assets and I realize I never even defined assets I will make a whole
video on what an asset is scurry from the definition of the book here the
resources owned by business arts assets examples of assets include cash land
buildings and equipment resources resources of a company those this
transaction increase assets assets our resources we got in our business all
right Brett what's the transaction transaction is provided services on
account for six thousand first thing you're going to do DC a written it a
thousand times I said a thousand times what is the DC low okay let me just get
it off when we get on a paper we got on paper dc-8 or okay okay now that's a
couple seconds now what are the do what is the dc-8 ler hold on I've been
writing this on my paper every single morning for a month now I know this I
got this all right back in jump cut boy here
you know you love it okay so are we having fun yet me let's have some fun
this is easy-peasy it's raining outside today we're going to have fun a little
FB classic series of war Oh for some warming hand side warm and
fuzzy some fun the whole world does this to make the world go around
Oh first thing you do D sealer then you write it down debit credit asset draw
expense liability equity revenue that's our debit credit
let's read in to the question provided services on account for $6,000 here's
our about $6,000 so we're working with $6,000 for our amount there's a $6,000
you provided service that account for $6,000 so we do have an amount we don't
have cam looking for cash I don't have cash provided services this would
probably say for $6,000 cash or something where doesn't it says on
account so what the hell what the heck is on account what the heck is on
account well you know you've been doing this a little bit you you kind of know
I've heard of an Accounts Payable before mmm but payables pay a bull I am liable
so an account payable is a liability well I'm never starting off on new in
this accounting world so I'm just going to put accounts payable here there's
another account that I've heard about accounts receivable yes
that's what I do work for somebody and they say I'll pay you later because
there's an account and I get a receivable I wish they would have put
provided services on accounts receivable but that's why you kind of gotta think a
little bit slow down just think of what's going on
logically I provided I output I provided services I provided services on account
for $20 I provided services I mowed somebody's
lawn for $20 did they pay me because they pay me cash no it's on account so
they owe it to me I guess because I didn't give me cash
I need money where where's my money dog you're gonna owe me later
oh okay you sure I kind of needed that money now
so anyways I've heard of accounts like you owe me later instead of cash
he's a receivable he's a receivable that notorious b.i.g ready to die he's
unbelievable 1996 I was like one of my first CDs that I bought I think that in
Craig Mack flavor near was the tooth for CDs head pot was 18 years old there are
some accounts that I've heard of I've heard of the accounts payable I've heard
of accounts receivable I know accounts payables liability because payables are
liabilities what the heck is an account receivable like how do you know that's
an account receivable because I just know that when I do work for somebody
and they say I owe you later it is an account receivable as well me and it's
it's a receivable so those receivable and payable I've just done enough to
know that's how it is why I always say practice practice practice what is an
account receivable it's in place of cat it is an S will go over assets common
assets are back attaboy alright so common common assets are cash
inventory buildings equipment accounts receivable and so on etc etc alright so
now let's get this let's get this let's do the journal entries and see if the
assets increase or not all right let's do the journal if you sell we're going
to put a line through for debit and credit provided services on account for
$6,000 now we've just we're just been kind of talking nauseam
about on on account in place of cash and accounts receivable we know accounts
receivable is what it is because we provided work and you owe me for the
money so that's a on account so it's accounts receivable we know accounts
receivable is an asset we know that if it is going up if an asset is going up
it is on the debit side so let's go ahead and write down in our debit for
this accounts receivable account receivable is an asset and it's gonna
get our credit now bleed what are some common credits now it might be could be
a negative negative one of these but I don't know liability equity revenue okay
that's like what it might be why does somebody oh you $6,000 on accounts
receivable what you do you perform services so let's just you know you
perform services that's your everyday services it's why you're in business
that if you perform if you perform your services for something and get money or
an IOU for money later it's a revenue that's what you do it's like you make
money it's a revenue you spend money it's an expense make money to Reverend
oh you spend money to expense so I provided services so I'll be a revenue
hug your soul eat someone owes us $6,000 you provided services that is a revenue
so service it's your main the main service you do in your business service
$6,000 what is service service is a revenue $6,000 service that's on the
credit what is a service is a revenue because you're getting you're getting
money for what you're doing so it's a revenue it's on a credit and if it's if
it's a credit and revenue it's going up we have revenue go
a revenue credit is going up debit credit let's see if this works
we've got revenue service revenue going up yeah we've got the accounts
receivable which is an asset for $6,000 going up does the debits equal the
credits yes does that make sense yes because I did I did a service for $6,000
so that's my revenue account should be going up by 6000 and services is it is
in the charts of accounts for revenues now let's go over to the debit side on
account receivable for $6,000 if it's an asset it's going up on the left side row
my accounts receivable going up by 6,000 yes so that makes sense debits equal
credits so anyways I'm just going to do the journal entry for it and then we'll
be out of here back at it so this would be the journal entry debit accounts
receivable for 6000 credit services for 6000
now we're at adrenalin Cherie it's always debits on the left and the
credits are kind of staggered like this debits are always first a bitch Christie
Ziggler damn this fee looks like shit I was a post production the first time
doing this so let's see if it works I never answered but yes the assets are
going up so yes this transaction does increase assets by six thousand four
counts receivable the journey of a thousand miles starts with one step
which I really like because you know speeding it being a CPA took me seven or
eight years to become a CPA and I struggled along the whole way it almost
gave up so many times and if I never would have you know took the first step
I would never be a CPA so it's like it's a eight-year journey but it all started
with taking that first you got to the first step doesn't matter how long it's
going to take you you know it could be a thousand
thousand miles it's a good first step it's like my first step was walking into
at the Community College here in Broward County Florida going to Broward College
and saying hey I'll be a CPA bruh deuces