Accounting for Beginners #14 / Journal Entry with Cash / Expense

Accounting for Beginners #14 / Journal Entry with Cash / Expense

yo what up? CPA Strength, strongest CPA
in the state of Florida, another video here obviously, gonna be about journal entries
just a quick journal entry example. i do too many examples in one video sometimes.
we’re going to do one example here, its going to be a journal entry, i think a fairly
simple one, and it’s gonna involve cash, now in my opinion, if you know what
happens with the cash of the business whether it’s a Debit or Credit, you know
you’re going to have half your journal entry done, also, $300 dollars spent at comcast, you’re doing your homework at night. you’ve got, you’ve got a task. Complete
this Journal Entry. You don’t know anything oh yeah, oh yeah, we can do, we can do, DC/ADE/LER I didn’t remember anything else, besides
DC/ADE/LER what does that mean??? it means there’s a Debit and a Credit ( DC ) and
then ADE/LER Asset Draw Expense Liability Equity Revenue, first thing $300
spent at Comcast, ok so we have money deal with the money first, because most
transactions are going to have money, as you know from the previous videos look
at the other videos Cash in it’s positive form, we don’t have that we’re
spending three hundred dollars, i don’t care for what, or why at this point, we’re
just going to do the cash first. so, $300 is leaving our bank
account, leaving our business, so that means cash in a negative amount, that
means we would credit the cash, it’s a negative asset to our bank, is a
credit to the cash, so, so look right here, is our Credit, three-hundred-dollar cash
that is our Credit !!!! why is it a Credit??? because negative cash,
cash leaving our business is a negative Asset, is Credited so and we have $300 leaving, so it’s going to be Credited so what’s our Debit? Whats our Debit for this?? This is going to be Debits & Credits, so three-hundred-dollar cash, is our
Credit so whats going to be our Debit, we can say three
hundred dollars. we spent $300 at comcast for internet, now
thats at your business, why did you spend the money??? $300 because i need Internet to do, whatever, everybody
needs the Internet, to try to produce revenue, or make money for my business, so
it’s an Expense, what Expense is?? we’re just going to say Comcast’s. like
that’s a chart of accounts, but that’s later on, so there is kind of how I have
it, so look here’s the journal entry, Debited $300 comcast, Credited $300
cash, Debit comcast, , that’s an expense, so that’s going to be in the debit column
we’re going to Credit cash, that’s an asset leaving, with this, this
would be a journal entry, we would have a date here, it was like 8 /15/ 16 so you have a
date, Debit is always to the left. and then your credit is is the
right-hand side, anyways just example it just takes practice practice practice
practice practice don’t even know how many times but when
you do it so much you don’t even think about left foot, right foot, left
foot, right foot, you just do i used to play baseball, hit off a tee, thousand cut
like thousands and thousands and thousands and thousands of cuts, and then
people are like “you got a pretty nice baseball swing” Yeah, i been practicing.
man. I’ve been doing this for about eight years learn accounting and stuff, and I am a
CPA now, but you know when I first started, something like this, I wouldn’t
know what to do, i would have throw my book against the wall I just didn’t know it, i just didn’t know
the DC/ADE/LER really, so It was hindering me. now when i see, this ii
see the debit, I see the debit as the expense, to see the credit as cash
leaving, I just kind of got it, but you you gotta get the basics before you
do anything else. thank you very much for watching. I
really do appreciate I I I can’t believe all the subscribers and positiveness
on my channel !!!!!!!! so i really thank you for watching PEACE !!!!!!!

51 thoughts on “Accounting for Beginners #14 / Journal Entry with Cash / Expense

  1. you already have over 2300 subs nice quality but get a microphone to buddy
    you rock man i totally love your videos

  2. Way to go , man
    i have an interview tomorrow in a field related to accounting and i didnt know what to do cause i knew nothing about accounting , and i just saw your video and now i have a good knowledge of accounting and it dont matter if i would not get accepted as now i can say i learnt something .
    thanks man

  3. Do you have a video over knowing whether debit increases or decreases an account? (debit increases assets)(credit increases liability)

  4. hii i just want to ask something, why is it that me and my classmates have different trial balance i mean different amount but debit and credit were balance??. reply please.. how to know if that whole entry is correct or wrong? how to identify, Thanks

  5. hey man, thanks for the awesome videos . Can you please make a video explaining accrual expenses and accured revenues? Keep the great teaching skills going.

  6. For example i will start a business and I deposited 5000 dollars in a bank and it issued me 5000 common shares in return.. how do I record it?

  7. Cash down (asset), Expenses up, thus cancelling each other and nothing needed on right side of ledger (not a liability, equity, or revenue)?

  8. The journal entry with two assets, how did the $500 desk as an asset equal $500 on the credit side? I didnt grasp that at all and the $500 was also not a liability, equity, or revenue

  9. I gotta tell you man, I need some basic accounting knowledge for my new job and your videos have made it so much simpler than I ever thought this could be. I first tried to buy the "Accounting for dummies" book because I honestly didn't know anything, but you've made it quite easy so far… I don't know how many videos you have in total, but will continue through the entire collection. Thank you so very much. From Colombia, South America.

  10. love your video. yoh made the accounting so much easier and simpler. if you were my accounting teacher at the beginning, i would not be so struggling now. thank you

  11. Hi thanks for your videos. I was wondering if you could give some intermediate accounting examples, or what is the classes towards the 2nd or 3rd year of an accounting degree.

  12. Thank you so much for all the time and effort that you put into your videos. I love DC ADE LER. Btw your sense of humor helps the videos fun to watch.

  13. Nice video again. Please do a video on Classification of Accounts Or the golden rules of Accounting. Yo Yo Yo.💪

  14. Honestly man, your videos are helpful, but you could have explained this example in like 20 seconds. For the length of this video, you could have done 10-15 similar examples. Also, This playlist is good for the student in their first accounting class, but will only get them to like week 4. I feel as though you could look through an accounting textbook, and maybe explain topics or do examples that increase in difficulty and is sequential because students are the majority demographic that watch your videos. Anyways, I like what you're doing, please keep doing it. This is just my opinion.

  15. I was just wondering what the cash would go under in the credits column? Is it alLiability, equity or revenue? These videos are awesome! I have so much difficulty grasping onto concepts in class and your videos help so much thank you thank you thank you!!!

  16. why this example is not "expense and revenue" according to ade ler? I think in this journal entry revenue or service is internet service and expense is the dollars used to get this very service! please guide me.

  17. I have to say that DC ADE LER is AWESOME! Began watching your 1st video last night (got up to #12) and the "light bulb" went off when you explained DC ADE LER! OMG it makes so much more sense to me now. I too struggled a lot with the wonder of "is this a debit or is this a credit"? THANK YOU THANK YOU THANK YOU!!! Love the videos, keep up the good work!

  18. Hi, thank you DC ADE LER, it help me digesting accounting. However I confused on this video little bit. Shouldn’t the $300 asset debit as we paid cash? Comcast also positive asset? Appreciated if you explain please.

  19. You said the internet debits the expense account. Does the cash credit the Equity account then since it's not revenue or a liability? Thanks 😀

  20. I am from engineering background and needed to understand accounting very badly in order to deliver a work assignment… and I was pathetic in that till I watched your videos ! And now that I can understand DC ADE LER .. it saved my life 😀 Thanks a ton !!

  21. Wow thanks for the classes. I am an MBA graduate but with no job yet but I think i should go back for CPA. I love how you explain every concept. Thanks alot.

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