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  • Whats going on everybody?? CPA Strength

  • Jonathan Dorn, CPA Licensed CPA state of Florida

  • we got accounting tips 4. We're going to do some stuff and then work into the

  • Income Statement, so hopefully this won't be too long

  • let's get it in, we are going to erase this, because, if nothing else

  • you can remember. what is it??

  • DC/ADE/LER ok let's go

  • DC

  • ADE

  • LER

  • now, if you don't know what those are watch the first one please.

  • Debit, Credit, Asset, Draw, Expense, Credit Liability, Equity, Revenue. Did i say that right?

  • Debit, Credit, Asset, Draw, Expense, Liability Equity, Revenue DC/ADE/LER

  • ok, i did want to change this one one example from last time

  • i just wanted to have a positive Income Statement

  • so I want to change this we want to change it TO $500 ok?

  • the income we got, I'm sorry we want to change the income to $800

  • because i want a positive Income Statement

  • so we're going to say that for the service we did we got $800

  • all right

  • so anyways, these are positive sides, debits and credits

  • we did these journal entries in the 3rd video, so I'm going to put a line

  • down here and we're going to have DEBITS on this side and we're going to

  • have Credits on the right side

  • that's pretty much all the journal entry is doing, is just separating the Debits and the

  • Credits, so, we're going through each journal entry and explain and label them you

  • you know if they're an: Asset, Draw, Distribution, Expense, Liability, Equity,

  • Revenue, so we're just going to work is going to go down the list and label

  • these, so anyways, What do i always say first ??? Let's do let's do cash first !!!!!

  • because of well every every example i have has cash, but mostly every example

  • in real life will have cash in it too, so if you know what cash is, what

  • what category

  • cash is, and it's in every journal entry. It's going to be one of these one of

  • these six categories

  • Ok, so, we know what cash is right??? cash is $$$$ money $$$$$$$

  • it's an Asset, cash is an Asset

  • so we know this is an Asset

  • we know this is an Asset

  • we know this is an Asset

  • we know

  • this is an Asset, and we know this is an Asset

  • ok

  • we also know truck is an Asset

  • yeah

  • A loan, is a Lability you owe somebody. it's a payable !!!

  • however, almost every single Liability will have a payable in it

  • Payable, we owe somebody the loan.

  • remember, we borrow ten thousand dollars from the bank.

  • so, this is Liability. What was rent?

  • we paid that in hopes of making some money

  • that's an Expense.

  • what's the service income?

  • we've got money coming in, thats a Revenue

  • and

  • now we've got, the only one we don't have left, is a Draw. ADE LER or Distributions

  • so that's going to be this

  • it's pretty much the other side of Equity, but we know,

  • the Draw, is going to be a Draw, is the Draw account

  • so

  • let's do the Income Statement

  • now, the Income Statement, like it implies is how much income you made during. it is

  • from a certain period of time

  • so usually the Income Statement run from the calendar year like

  • businesses will be so we run from, say January, from January 1st 01/01

  • will say 15 / 15 now through 12/31/15 and that will be the Income Statement

  • certain period of time with Income Statement, and this is Income

  • Statement here. But anyways you're going to have the Income Statement is the

  • Income Statement its Revenues minus Expenses. So we got eight hundred dollars

  • we got it

  • service

  • Income

  • $800 - $500 for rent. And this is just kind of uh

  • I guess accountant speak for a negative number you put the brackets around it so

  • just put a negative in front so we have 300 of net income

  • net income

  • so is there is a very abbreviated Income Statement and now that when when you

  • start next year you will start a new Income Statement. Income Statements only

  • for that certain period. anyways

  • that'll be it for this one. the next one will go over the Balance Sheet.

Whats going on everybody?? CPA Strength

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