hello hello hello welcome back once again what is this a brand new day a
brand new CP a strength video and that is Who I am I am CP a strength I am the
strongest licensed CPA in the state of Florida licensed CPA strongest one
that's who I am in the whole state yes that's me what
are you going to do well today I'm going to do something special with accounting
but what I usually do on a daily basis over here is I teach the world
accounting through building blocks building blocks the basics the basics
the basics for get into today's action let me show you up over here this is the
best playlist in the world this is my accounting playlist for beginners as oh
my god your dreams come true you'll be wealthy beyond your dreams today we are
going to do accounting for beginners number 53 this is ASB 53 we're going to
roll along with the payroll with the weekly paycheck this is our third video
of payroll first one we did the employee side second video we did the employer
side third video we're just talking really about the employers side as well
but it's going to be a journal entry and
for you binge Watchers out there that didn't really know what was amiss the
past two videos but now you figured it out because you see DCA blur I know I
know it pained me I just figured I didn't have ruined last two videos for
the DCA blur or I wasn't using it at all I still don't think this should go
anywhere but I don't know what is back okay I'm not planning to take it
anywhere anytime soon this is what made a player is what made a player do is
bang anyways DCA's alerts my mapping system
and trying to keep everything straight debits credits assets raw expense lively
equity revenue and we're going to journal entry with
the payroll a payroll journal entry that's what we're doing in question
please anyways there had we absolutely had dude dude or do that work anybody
can work deserving it or it for four dollars ghostwriter and we still we
figured we figured out through the past two videos passed to payroll videos but
that's going to break down that for ours gross pay is going to break down to a
three hundred twenty five dollar paycheck to the employee and then the
employer has to pay a hundred and fifteen dollars and payroll taxes to
various agencies comprising of different things
seventy five dollars if you remember was comprised of Social Security Medicare
and federal withholdings and the other forty was comprised of matching the
Social Security matching the Medicare and then about I'm not sure seven or
eight dollars comprised of state unemployment and federal unemployment
tax but that's what so 75 so so I've this hundred and fifteen that's the crux
of the journal entry to figure out what is comprised of it's comprised of what
you know seventy-five dollars of taxes because anybody if you didn't know you
know the you know the gross was four hundred in the net was 325 in that
paycheck so you know seventy five dollars came out of the ways expense now
that will come into play later more figure out our second journal entry
literally so there is e to two transactions that are coming out of the
bank account right so you had some do work for four hundred then you figure
everything out when to your bank account that hey I need to I need I need to
check I need one check for 325 and another a
paycheck to the to my dinner do that and then any another paycheck for a hundred
and fifteen dollars and that's in payroll taxes and then the guides the
bank or whatever said hands $440 I thought you said you had a guy in
working for 400 and you're like yeah welcome to being an employer so we've
been that side of us so the now here now here is good I haven't gone to too long
and we're going to have two journal entries so whether you care or not about
the whether you care or not about payroll or whatever and the journal
entry for payroll that you care and I this is interesting because we do two
journal entries and they're both kind of all cash so it's very normal
no I got no I got I got a question the other day that said you know I get I get
an ass I get the the asset how was an asset being a credit because you always
say access is a debit so how was an asset of credit because
York so I always trusted in the in the positive form sometimes I forget but
these are going up to think about cash as the asset for for how to be a credit
because it's the debit usually safe that's if it's going up I mean yes cash
is an asset but in a business you're going to have you're going to do
transactions where you get cash and you're going to have transactions where
you have cash leaving like when you buy something for the business then you're
going to have money going so you're going to have cash going down some
things are going to have an asset going down and it's a debit and debit is where
the asset goes up so credit is where the asset goes down so that's how that goes
and also this is we have $325 leave in our bank account so let's do that you're
let's do journal entry first this is going to be
this is going to be the first journal entry over here and this is this is the
first parallel tree there were 115 to settle in tree and that that's the
answer for over here on the right hand side so let's do the first one now we've
just talked about it we have $325 leaving our bank account we have $325
cash leaving where would that go when you talked about that cash is an asset
it is leaving is dropping as a lowering form some of your credits or 325 credit
cash now what was it for now I will tell you all both the 325 and 115 dollars are
both expenses for our company so there are both expenses so there's three
hundred three hundred and twenty-five dollars would be you know we already
have our credit right so you know this has to equal and see how we have three
hundred dollars and what what in the chart of accounts would be your added
out of these out of these six possible boxes what would well you know I just
told you their expenses but a payroll expense it's it's an expense it's
something to keep the business going and so so it would be an expense out of this
box some payroll so wages expense that's the debit through 25 ways to spend
credit 325 cash now let's go to our second journal entry which is a little
bit tougher and that has the breakdown of what the things are but let's let's
go down to our second journal entry here for this transaction one hundred and
fifteen dollars cash left the bank account or check same thing that would
be a credit 115 cash credit now why you know why would buy a binder two things
here why wouldn't the a whole hundred and fifteen dollars be a
wages expense well because it's not for a couple reasons that you already have
three hundred and twenty-five dollars of a wages expense over here so you only
need 75 only 75 dollars of this is ladies expense if you tilt the whole 115
as a wages expense you have 440 as a wages expense but you only have 400 so
there's something wrong because kind of some of the monies and taxes so here's
how I would figure this out this is how I figure out for clients when when I do
their payroll and then I have transactions come out as a bank account
so I do it through QuickBooks and I have rules so you know it takes a couple
seconds but this is what I do to figure out the first time I would take $400
gross pay that's what I want we net pay we net pay employee 325 to at least $75
so there would be $75 in taxes to make to make them whole for the $400 so then
you have this other other transaction for one hundred and fifteen dollars so
you know well some of it seventy-five dollars of it is wages expense and then
the rest of it is payroll taxes so you just use you 115 - the $75 in wages
expense feed your payroll taxes and that's the debit the depth the debits
are $75 wage expense and $40.00 payroll taxes and the credit is 115 now you
might be freaking out and saying oh my gosh you have to do you have to debits
in one credit not chill bro that's cool that's how that's how things mostly roll
and now I never said I always said has to equal you have to equal devils have
to equal credits there could be 200 debits and one cash so and that happens
all the time thinking about like if you have a bank account that you have 20,000
dollars taken out of for various various variants very very
expenses you would just write the journal entry would just be all the
expenses and then one credit so but that's a different thing so I just I
thought this was a fun one since we're doing payrolls I felt like doing the
payroll I think I'm going to do like one or two more payrolls unless I have more
questions or comments that I'll do a lot more whatever you guys want to see I'll
make the video I love making these videos if you have a question about
anything you don't understand anything from any video ask because then like I
see a bunch of questions a bunch of questions in the same thing and a bunch
of like lights on they need the question so anyway let's summarize this up I hope
this was fun and the thing is the one of the one of the journal entries you have
to split up because it has the 115 one has wages expenses and payroll taxes now
I have a couple more minutes I was good I rate this fast but you know you boy
can't oh oh anywho so let's let's just look at what
the three let's look at the 440 right 440 came out of the only two different
people ooh look 440 325 and 115 dollars came out of pad came up for cash for a
foreigner dollar goes pay now although you do have expenses of three hundred
and twenty-five dollars and you have another expense over here seventy-five
dollars wage expense to make them whole four hundred see I'm four dollars wage
expense right so yup four hundred dollars
wages expense and then 40 payroll expense or current payroll taxes are
taxes payroll taxes this is the wages expense well you know that someone's
like oh that's deductible the $40.00 is deductible so they all it's deductible
okay I mean it is but think about it just goes against it's deductible so it
goes against the revenue you make so it lowers your income by a little bit so
then it lowers the amount of taxes you pay by a little bit um I'd rather just
have the freaking $400 so that's you know that's sometimes what you have to
do when you're in your employer I want to I want to go I think that the next I
have an idea for the next video I hope this was good I'm about to run out of
time let's see if I can get fat was fat got my Franklin Street Grill reppin my
Linney boy Franklin II listened to a lot of Franklin E for motivation on T row
for motivation lately a haystack for motivation jellyroll for motivation be
for t be legit pounds and live music for motivation and think about all the
haters and everything all people that hate on me my whole life and and then I
just get so much so much love I get so much so so much love in this channel
it's like it's always February anyways I hope everybody's enjoying these if you
did enjoy it please leave a like please leave a comment saying what you did like
or what you didn't like and till next time have a great time try to keep
things positive juices