we're on 33:3 add another three welcome back man welcome back thanks for having

me thanks for clicking on another one you want to see this ugly mug alright

welcome back this one is today today CPA strength oh

I'm sorry Who am I I am CPA strength I am a

strongest CPA in Florida I'm a licensed CPA in the state of Florida I'm doing

big bang's over here baby BIGBANG's you know what I'm saying today

is accounting for beginners 33 CPA strengths what are you going to be doing

in this I'm going to be doing with adjusting entries I'm going to be doing

more adjusting entries I'm adjust the entries of Gentry's entries of adjusting

x' and our first first adjusting entry we did depreciation then the last one we

did prepaid expenses 33 what adjusted entry when I do today we're going to do

on an earn revenue let's bring it back from one time this kind of goes along

with the other one prepaid and expenses the other the other one we gave our

money out we gave our chippers out to people we

were going to get the work later so it was an asset but that was before I

was preparing Spence's now we're on an unearned revenue and now we get money

first and we have to do the work later so it's liability let's go through it up

video over let's Hardware unearned revenue just close to the depression

those kidding that was lost I never I never pet in my hand

anyway some quick housekeeping now you already know this you have been writing

this on your paper every day dc8 learner debit credit asset or expense liability

equity revenue in the normal pause balances okay now we're doing unearned

revenue today you don't know what unearned revenue is just think about it

revenue that means you work you do work for somebody okay and you get paid for

it that would be some revenue unearned revenue on usually there's nothing no

it's just revenue so I guess it's you have to know that it's you if if it if

it's not specified it is earned revenue it's just revenue usually just revenue

revenue revenue but then you're going to see something you didn't do you didn't

do the work you got the money you didn't earn it unearned revenue so that's what

this is unearned revenue here's what happened on 1010 one on October first

you mow you mow lawns for a living and that's what you do so you got you know

put your hat on you got to figure out who you are per question you know on

this question it's you you're lent your landscaper you're going around you get

your meeting with a new client you say yeah I do I do all this for I do a 100 a

month I cut I come once a month I do everything I trim I cut grass I do this

I do that 100 a month you know and your your client or whatever says that sounds

great listen I'm a really busy guy and I just want to pay for a year up front I'm

going to pay you here's $1,200 for a year okay don't bill

me for a year now I say oh I know I don't usually account for that I usually

just go month by month so just give me a hundred and keep the 1,100 he'll know my

number one rule is give me that money I'll worry about it later so basically

yeah I just got a $1,200 check I'm pretty happy I'm like you

I don't like I don't know how to account for this I just watch a CPA strength

video and I'll figure out how to account for this okay get that money dawg get

that get them chippers up first I'll never pass up a buck I'll never pass up

a penny I don't care if it's heads up or tails down get my money on ten one song

a new client says I'm just going to pay for the whole year right now gives you

$1,200 cash now that's going to be your debit think about it we've gone over

this at nauseam you've got money you're getting money cash is an asset normal

balance going up that via debit cash $1,200 what did you get the cash for

what did you get the cash to mow lawns that's my normal operations is how I get

how my business makes money and I didn't mow the lawns yet though he just fronted

me all the money I haven't mowed a lawn yet he just fronted me all the money so

I didn't earn it yet our nuran revenue our revenue is going to be your credit

of twelve hundred dollars even if you didn't really know this yarding you know

cash is gonna be your debit fill our dollars so our in revenue of $12 is

gonna be your credit under revenue is most most liabilities or the accounts

payable wages payable taxes payable payable payable payable but if you think

about it I run revenue is liability because you still you owe you owe

somebody you're liable for work that was our journal entry and we got these

chippers so think about it so so our so on the books here we have X on the books

here we've got 1200 cash 1200 under rubber if this is the only journal entry

you've ever made alright I did not do any work yet so we have to add we're

adjusting for the end of the year we're on the end of the year in a year twelve

thirty two years twelve oh my god it is it is the end of the year really 1231

yeah I swear to you I wouldn't lie to you it is let's figure out per month how

much this is now we're going to right now we're

to do now we're trying to make our adjusted entry here without the cash

what do we get paid we got paid $1,200 for 12 months it's 100 ollars per month

all right now how many months is it from here 10 1 all right I'm going to do my

hands because this is the easiest for me all right so 10 one to ten thirty one to

eleven thirty one to twelve thirty one three months we have three months that's

going to be $300 yeah I'm just getting me I'm feeling bold I'm just going to

put watch this three months we got to our adjusting journal entry of three

ones here 100 110 one to twelve thirty one years three months come on it's

three months I use what a little blue debit 300 hours you know they have to

equal I'm gonna credit it for $300 this is our adjusted entry we don't have cash

sadly enough so what are we gonna do I don't know

no I dunno I'm saying for you you might not know now what's what's this

associate we have to do with we're so shooting our adjusting entry here with

unearned revenue we have Lucia our revenue on the books you're like did we

earn any of that revenue yeah three hundred dollars for three months we

earned it okay so now we have earned revenue or just regular revenue where

would that go on a journal entry because that's what we're doing we're making

another journal entry for this adjusting entry our rec room we turn it into

revenue revenue as a credit so that would be that's give your credit three

dollar revenue you're not going to mess with this cash account because you still

what we're doing this entry there's no cash involved so you still just have

1200 dollars cash

but now earning revenue was $12 we've used $300 of this of the earner revenue

and made it earned now now you would want to take off on

a revenue or you would want to lower it or in revenue

I know is a liability it's one of the it's one of the only liabilities been

payable so I want a lower earner in revenue because I've used some of it

with revenue so it's going to be going down so if it's going down it's gonna be

a debit alright folks there's the journal entry debit for your

dollars are in a revenue credit $3 revenue that's the adjusting entry for

unearned revenue basically are going to revenue think about it you've got the

chippers but you didn't Ernie that's why it's unearned anyways thank you very

much thanks for being here CPA strengths loves these I actually do this first

thing in the morning wake up at 5 o'clock get to my office by 6 and do

these videos and I love them but then I added it down and stuff and and it's

like I'm really on my flow doing these so hit a like share subscribe get these

out to more people for good because everyone should know accounting alright

everyone everyone loves money everyone needs money please