yo yo yo what's going on everybody this is CPA Strength I am the strongest
licensed CPA in the state of Florida yeah buddy
and that's who I am what do you do dude listen man I teach the world over basic
accounting building blocks the building blocks for building blocks my building
blocks I happen to have the best playlists in the world it's right over
here it's an accounting playlist if you hit this card right here you're all your
dreams will come true but let's get into the current topic of today which is
counting for beginners this is my classic series 79 kind of for beginners
number 79 that's my classic series boy yeah this one's going to be office
expenses but this is like I think our seventh list our seventh video in our
widgets Inc so we're gonna do something brand-new we are gonna do office
expenses and and and we're gonna do computer and internet expenses so we're
going to do two expenses with one journal entry Oh mind-blowing right hey
this is also this is my DC Aylor this is why you might know me thousands upon
thousands of people have learned accounting have gone and had elevation
and step up with this okay Democrats the trucks friends liability equity revenue
see I say I say it once or twice every day because I do these videos so how am
I gonna forget it right all right what are we doing in 79 widget number six
what you doing boy we're doing office uh widget in court widget incorporated by
it's three thousand dollars of office expenses and three thousand dollars of
computer and internet expenses for three thousand dollars and we're gonna do a
journal and we're gonna do a journal entry first you know how Joe's journal
entry chart of accounts general ledger balance sheet income statement that's
how we does what we're here for would you incorporated for however knows how
many times but we just had our half of the year this is our seventh we've had
our half a year we're going we're doing pretty good we're still we're still
paying the bills yes what just got some money in so now we're
gonna now we're spreading it on expenses it's pretty much how it goes get the
money in it goes out you're trying to have it go out so fast so those are
Journal Insurance 7:00 7:30 115 now this will happen fairly uh fairly often let's
say you do a a bank account let's say you do a bank state let's say you're
reconciling someone's bank statement or you're doing the bookkeeping for the
bank statement basically you're taking whatever happens from the bank statement
and what really happens on a bank statement money going in or out of the
bank to journey and they might separate it
sometimes between income for the months and then expenses for the month so you
might have two journal entries you might have a journal entry for the money
coming in so some money coming in to your account that would be a debit
checking account or debit cash and then you would credit all the different
occasions why money would come in so you just have one one money coming in I
don't know why I started with that example because we're not doing that in
this one we are having money going out but that would be the other thing so you
have money going out so you'd have money going now that's our dresser that's
gonna be our credit by the way is checking account money going out it's an
asset leaving if it was the asset going if it was an asset it is an asset if it
was going up and value to be a debit but since it's going down in value it's
going to be a credit what comprised of our $6,000 credit was these two expenses
computer and internet for three thousand and office expense for three thousand
it's I don't know this might blow somebody's mind like I don't know when I
started working for a company and started going through bank statements
it's a lot clicked for me so that's that's art so basically that something
new we've done for one I don't know if I've done this before or
we have one one asset for $6,000 credit and then two debits to expenses for
$3,000 each but now the main thing is the main thing I always say is debits
equal credits debits equal credits do debits equal credits here yes they do
now you can have you know I guess a hundred debits and you can have one you
know 1 to 100 credits you can have varying the various amounts but they
equal all right next board oh my god we're back okay
oh we're screwing we're just gonna finish this up I'm having a good time
doing these let me just tell you that for now so chart of accounts what do we
do well you know we've had a checking account we've been done had the checking
account what about we added two expenses in our chart of accounts where a
computer and Internet and office expenses so look at our chart of
accounts now these are all accounts that we've used that we've used in our
business curling and as you know if we have a new account which we probably
will next when we next accounting for beginners yes we will have a new account
well we just had two new ones this time in our journal entry so we made two new
accounts so it happens right we've been going for a while we had a computer and
internet and we had office expenses so we added it to our chart of accounts so
now currently have all these different kinds and the chart of accounts are is
either going to be an asset a liability of revenue links or expense or an equity
account that's what the chart of accounts is going to be comprised of now
the chart of accounts those five accounts those are in DC Aylor and the
chart of accounts is the balance sheet assets equal liabilities plus equity and
revenues and expenses which is the income statement but anyways let's go on
what's inside let's go to our new ones computer internet because now we're
going to go to the subset of all the chart of accounts that our general
ledger what's going on in inside every account so we've got 731 with
here on internet for $3,000 that's the only thing we have $3,000 experience on
731 1-1 expense inside a computer in error
same exact thing for office expense we have one X we have one entry for $3,000
at 7:30 1:15 so each each of computer and computer internet and office expense
both have balances of $3,000 at 7:31 now what other account change what other
general ledger account changed and are from our chart of accounts from our
journal entry was the checking account now next stay tuned next time because
we're gonna have a rare case where we're not going to use the checking account
but as you can see we've used the checking account every single month
every single journal entry that's why I always say if you can follow the money
you're gonna you're gonna have a lot easier over time in accounting or at
least that's my general I mean that's what I found so we go through 731 see we
had I just put one since since yes it was three thousand and three thousand
but we had one little journal entry for six thousand I could have separated
these but I chose to include it together anyway 731 15 from the checking account
you had $6,000 leaving right yes because you paid $3,000 for $3,000 for office
expense and that is also indicated by the journal entry anyway after adding
and subtracting all the checking accounts 731 15 we have a $5,000 balance
let's go over let's go to our last board here you know I mean this one this one
is just fun here I love doing the balance sheet and income statement at
the very end I'm not trying to talk about some different stuff this time
let's go balance sheet income statement balance sheets on top and comes tables 9
balance sheets on top because it's chosen I ain't come and you can
summarize what happens in the income statement just from seeing the top of
the balance sheet income statement is from a period this one's
from the beginning of her business one 115 through 731 15 that's this income
statement now the balancer is just for one certain
point day in time one point of day entire minutes for 7:30 1:15 is this
balance sheet I way I was look I would just look Oh assets $9,000 what is that
$9,000 rats heads comprised of 5000 and the checking account 4000 of truck and
fixed asset okay so that's what my assets then I would look I would know
that it's got to equal 9000 I would look well okay so I have $9,000 in my in my
account in my business here 5,000 checking 4,000 truck
like what so that's what the business has now basically you say is assets
equal liabilities plus equity so you have 9,000 in the business liabilities
1% whatever that $9,000 dude doesn't owe to somebody else and what part of that
$9,000 does it have does the company own itself an equity capital ownership and
the answer is you look real fast and it owes $10,000 really we only have 9,000
end yeah because last like the company
actually has a negative 1,000 dollar of equity loss in net income because the
net income comes through see you look so you can see all that right there on the
balance sheet and then how did you get the negative $1000 and then that income
because that's from the income statements that's on second so you can
basically see the summary from the balance sheet now this would be on
second part of the bottom or the bottom half so you'd flip the page and see how
did you come up with that negative $1000 well it's revenue minus expenses so you
have revenue of $12,000 minus expenses and here's $3,000 computer internet
$3,000 office expenses that we just added so we have a total of thirteen
thousand dollars in expenses so revenue minus expenses is the net income which
is negative thousand dollars so that's the income
statement going over to the balance sheet boom yeah let me just say oh I
have a cold minutes to talk yeah went kind of fast was what dudududu is weird
I woke up on the wrong side of the bed I seemed to just I know people just don't
seem to know me you know who I am why did you put that in a video like why do
you care you know and I'm trying to be positive this month everything's trying
to it's hard it's way harder said than done for me but whenever I have
something going negative in my head and I just think about it and think about it
and stew and stew and sue and I don't get anywhere I just think about think
about it think about it and it just gets me so upset and it gets me in a state of
what's the point and I should just not be here and it's just bad real real bad
so I try to think of something that makes me happy and it was hard I got
here at 3 in the morning started making my new board like what's gonna be in our
business and maybe the caffeine started kicking in I just started feeling better
and I'm just getting sidetracked a little bit but I gotta tell you once I
was excited about this lesson and I know inside that I'm really doing a good
thing and this gives me purpose to film and do accounting and this I just feel
like I'm filled with much purpose and it wasn't so much an act to be in a really
good mood once I started filming so yeah I just
thought I'd share you with that anyways I hope you have a great day evening
share like subscribe DCL or don't be stingy and I'll see the
next one deuces