Name: Accounting for beginners #6 / Putting an Asset on the Balance Sheet
Uploaded: 2017-06-23T13:55:59.000Z
Duration: 6 min
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yo what up everybody??  Jonathan N. Dorn,  CPA . You know the strongest  CPA in the state of

Florida.  today we are going to add an asset on your books.  so,  over here I have

Past perfect

a Balance Sheet.  As it stands,  before we had added anything on here.  You know

that. ( Assets = Liabilities + Equity )  that's the basic accounting

equation. but anyways,    all we have for Assets. keep it simple as

cash for $50,000.  ok, total Assets $50,000 now, this is a typical Balance Sheet

( Assets = Liabilities + Equity ). so 50,000 total Assets. We have Liabilities a loan

from the shareholder.  $10,000  The Equity,  we have retained earnings 20,000  They

income 20,000  Total Liabilities and Equity 50,000  So,  that's what we have on our

Balance Sheet  So 50,000  and 50,000 now, we buy a truck, were gonna buy a truck for $30,000

so how do you put it on your books?? you know how do you get it on

well of course over here i have my DC/ADE/LER  if you don't know what that is

watch my  before videos,  okay you know that,  so right Debit/Credit Asset, Draw,

Expense,  Liability,  Equity,  Revenue.  Now

we're going to put a truck on the books. truck is an Asset

I think we all know that ok.  it's something tangible we have

hopes of Depreciating, that can give us some income in the future for our business

but,  you know,  truck is an Asset,  so we're getting,  we're getting an asset,

we're going to put it over here.  Truck,   right,  because we're

getting,  is a plus positive side,  so that's going to be our Debit.  so our

30 thousand.  ok, so now we need a Credit,  ok now we're going to do two

different options for this.  the first one, let's say you have cash

let's say you just paid cash out of business for thirty thousand so cash is

an Asset and you have lessened your cash by 30,000 so so this

so that's going to be our journal entry and would it match up here ???

well,  we're going to have a truck your not even going to mess with Liabilities and Equity

your not gonna mess with that right now  if you spend cash on the truck.  because you're going

your not going to have 50,000 cash.  you have 20,000            50,000 = 50,000 ok !!!

we keep this scenario going.  is that you

borrowed a loan for so I know any of these scenarios we always have the truck

is a positive Asset that's going to Debit so so we're going to keep going to

keep this here but we're going to change the scenario here and not say we can

spend cash are going back to 50,000 here so it's gonna be 80 thousand alright

let's see how it's going to be 80,000 now your Credit we got a loan

um you owe some money so the Liability positive Liabilities of Credit so we're

going to have ummm,  loan from shareholder. for 30,000 see

everything  always has to equal.  I love the accounting !!!!! see

Debits equal Credits and see now now we just had no going to add 30,000

to this so it's going to be 40,000 so now this is going to be 80,000 so

anyways that's how you would put an asset on the books.  Watch the next video

We are going to Depreciate this Asset alright peace !!!!!!!!!!

Subtitles ListPlay Video

Accounting for beginners #6 / Putting an Asset on the Balance Sheet

scenario

positive

mess

revenue