yo yo yo what up fam strongest CPA in the state of Florida I'm back again what
up fam this is AFB 34 this is my classic series this is the best accounting
series in the world turning from your nurse started for if this is your first
time I will link a playlist over here to the best place of the world
if you're back you know what it is legging it in okay best shirt in the
world is it kind of for beginners number 34 what is that train take Quattro a
hair on fleek all right is account accounting for beginners number 34
classic series boy classic series adjust the entries time for beginners number 34
the classic series this would be if you're going to crude basis
you drink journal entries for a crude letter between cash and accrued its cash
cash basis when you're when the cash hits your sticky little hands we'll go
over that later don't worry about that now
this is just basically I'm going through all the adjusting entries and I'd be a
mess if I'd leave a crude revenue out even though I don't really use a crude
revenue which well I got a good night's sleep last night so I'll fill in one so
we're going to a crude revenue today let's go with the definition of a crude
revenue in the book unrecorded revenue that has been earned all right so I did
some work I did some work did some work what happens when you when you do work
for somebody give money get them chippers where might shippers at man but
cash has not been received like give my freaking money man
uh you're going to get you know hey you do a journal and do a journal entry for
for a crude revenue or it's going to say you know you earn the money you did the
work but you didn't get paid what would the journal entry be it's
always the journal entry it's always going to be Journal true what's the
journal entry going to be what is the journal that you're going to be now I
wrote this on my paper every day accrued equals no cash for maybe year okay I
wrote a crude equals no cash every you know first month I didn't know and then
all of a sudden I started getting to you know the dudes are doing general tree
you earn money but you didn't get cash you earn you earned to earn the revenue
did the work but you didn't get in cash and I wrote I wrote a critical little
cash on my paper every day for like a year so I just I just started seeing my
pneumonic paper in my head and I said oh cruise no cash did the work didn't get
cash it's crude crude let's accrue something uh-huh so it's accrue
something let's accrue it baby with my pneumonic page that I wrote every day
for about a year every day for about a year and I used to write on the top of
it the sacrifice hustle grind you know they say you're a piece of shit they say
you can't do it you should be dead about all this stuff because I didn't feel I
don't feel like studying every day man I didn't feel like going to work come home
from work and studying but I read all that stuff in my paper all right this is
my paper every morning and also write dc8 larb it's kind of what I'm known for
if you don't know go back to old videos DCL or debit credit asset or expense
liability free revenue all right let's get to the problem enough talking right
Nate all right a crude revenue unrequired revenue that has been earned
so I did work cash never see Brennan get chippers accrued equals no cash that's
what you're going to write on your paper along with this
remember if you can't remember so already this is starting out to be some
be some trash okay because at work and get my money how am I going to my girl
how am I gonna take my girl out for that too
you know the Applebees Applebees - 420 how am I gonna do that we're gonna get
my money I'm gonna tell my girl oh we can't go to Applebee's because I didn't
get paid I'm not at that Ruth's Chris level yeah uh December 15th so middle of
the month I knew the client who say okay I'm going to do a monthly bookkeeping
for you for $100 great great JT that's awesome I heard the best best CPA around
you heard right yes a.m. now this is like a textbook example because if this
was real life I would just prorate somebody meaning I would just build them
for half a month $50.00 on December 31st that's what I would do a prorate but and
you know it anyway it's December 31st we're closing our books we're trying to
get our we're trying to get our the best representation of our bar business
money-wise expenses revenue what you owe this earth in the balance sheet income
statement because we're going to go into our CPA to do the taxes the hard thing
about this is there's no starting entry for it
you know usually the adjusting entries there is an entry that first and then we
adjust but with this one there's not see no entry I guess you just have an
engagement letter or something so what I'm saying is at the end of the period
how would you know to write this I guess you would go and be like oh I've done
all this work or who owes me money I mean I always know who was in money so
I'd be like cools me some fucking money as long as you can do 100 a month come
December 31st you've done a half half a month's work for $50
you want to put that on your mango journal entry and you want to put that
on your books to have an accurate representation of your business at the
12:31 date how how we're going to do this journal entry did we get any cash
no that's why we're a crew ensure we didn't get cash yet damn it hate it not
getting cash all right what happened here let's just go and what happened
over here I did bookkeeping for her Amalia now December 31st I did a half
month work for $50 $50 I'm going to start over I'm gonna start with you
credit first sometimes I start with debit sometimes I start with credit you
know it just depends so I'm gonna start I'm going to start with the credit here
I want to start with a credit see it half month of what half month to work I
did bookkeeping that's what I do every month that's where normal stuff that's
my revenue I am doing an accrued thing so I'm going to count I did the work and
I'm going to put revenue over here for the credit $50 there's the revenue
positive and credit form think about this what if you did get cash on the
revenue if you did get cash you would put it's an asset you would put $50 cash
right here done well then you you know then you really wouldn't be accruing
anything because you would get to cash that didn't happen here give me the cash
give me the cash man so I basically fronted my work out you didn't get the
cash they owe you the cash you've been doing examples and you know what happens
when someone owes you money or something to owes you something um it's an account
receivable account receivable we just did a bunch of account receivables how
you use that every now and then account receivable account receivable we know is
an asset and that's going to be our debit because we didn't get to catch
they owe us the cash journal entry here for
doing doing work not getting paid the amount of $50 we did the work so we're
going to recognize the revenue we're going to put the credit is going to be
the revenue we didn't get paid we need the money we have account receivable
even though no one's going to ever pay us which can close the business down $50
debit if you dollars debit accounts receivable is the debit the credit for
filter revenue anyways thank you very much for watching me again I love doing
these and hopefully I am getting better and better every time and I just love
doing these I can't please