I've read a lot of boring stuff so that you don't have to! Today we will summarize some of the useful information in the FASB Concepts Statements and other literature. This information will be useful as you move along to more advanced levels of accounting.

Example: You own a sole proprietorship. For this period, you had revenue of $100,000, wage expense of $40,000, and computer expense of $30,000 (net income of $30,000). You also contributed $10,000 to the business this period. Step 1 – Transfer Revenue and Expense items to Income Summary Debit Credit Revenue $100,000 Income Summary $100,000 Income S…

Today we will go over the adjusting process. This is where we make our adjusting journal entries to get from our unadjusted trial balance to our adjusted trial balance, which contains the figures we use on the financial statements and tax returns. We will briefly discuss prepaid expenses, unearned revenues, accrued revenues, accrued expenses, and d…

Today we will discuss the accounting cycle. This is the process taken each period to record transactions, prepare the financial statements, and to reset the temporary accounts to zero for the next period. Keep in mind that the steps you may see in your accounting textbook or elsewhere may be slightly different - I have simplified some of the steps:…

Example # 1 Our Accounts Receivable balance increased by $20,000 from the end of last period to the end of this period. 1. Accounts Receivable is an asset, so it must be debited to increase its balance. 2. Create journal entry: Debit Credit Accounts Receivable $20,000 Fake Cash $20,000 3. A $20,000 increase in Accounts Receivable = $20,000 cash flo…

Today we will discuss the cost layering methods that are used within the periodic and perpetual inventory systems.Assumptions for purchases:50 units purchased on January 1 at $10 each (50 x $10 = $500)100 units purchased on February 1 at $11 each (100 x $11 = $1,100)150 units purchased on March 1 at $12 each (150 x $12 = $1,800)Assumptions for sale…

In this episode, we will cover the journal entries made when using the perpetual and periodic inventory methods, and we will also go over the formula and journal entry to record cost of goods sold under the periodic inventory method.

Today we tackle depreciation and amortization, and we discuss fixed assets.Facts for following examples: Asset cost of $85,000, salvage value of $10,000, and a useful life of 5 years.Note: "Depr" represents depreciation expense, "A/D" represents accumulated depreciation, and "B/V" represents book value at the end of the year.I tried to align the co…

In this episode, we discuss unearned revenue.

Today we will discuss prepaid assets, and do some examples with journal entries.

In this episode, we will discuss accounts payable and journal entries related to accounts payable.

In this episode, we will describe accounts receivable, and we will go over journal entries related to accounts receivable.

Today we will explain contra accounts, and we will also do some examples to demonstrate how the debits and credits work.

In this episode, we will briefly discuss the four main financial statements in accounting: the balance sheet, income statement, statement of owner's equity, and statement of cash flows.

In this episode, we discuss the flow of accounting from how our journal entries are recorded in the general ledger, summarized in the trial balance, and then presented on the financial statements and tax returns.

In this episode, we discuss how each type of account in ALE-RE is affected by journal entries, and we learn the debit/credit language of accounting using A|LE-R|E. The lines separate the types of accounts with normal debit balances from those with normal credit balances.This is the most important episode to listen to if you are just learning accoun…

In this episode, we briefly discuss each type of account in accounting: Assets, Liabilities, Equity, Revenue, and Expenses.

Hi Everyone, Welcome to Accounting 101 with Jimmy Stewart. I hope to explain accounting to you the way I wish someone had explained it to me when I first started out. This isn't meant to be your only source of learning accounting, but this is meant to advance your knowledge in accounting by reinforcing the fundamentals that you absolutely must know…