Accounting for Beginners #31 / Adjusting Entries / Journal Entries / Depreciation Expense

Accounting for Beginners #31 / Adjusting Entries / Journal Entries / Depreciation Expense


yo yo yo what up fam I love doing these
welcome back accounting for beginners my classic series number 31 accounting for
beginners number 31 we hear boy if is your first one hit subscribe and looking
for the card up here because it’s the best accounting playlist on youtubes on
the internet in the world let’s go this is highly requested so 31 it’s going to
be the adjusting adjusting entries in the book that I have here in the book
this is the book I’m rocking with I got like $10 off Amazon I don’t know five
different adjusting entries and we’re just going to go through them the next
this video in the next four I guess we’re going to do the adjusted entries
yo here they are I’ve been listening here they are just something I noticed
out of the five adjusting entries and why are they adjusting you do it at the
end of the period you need to make your justed entries and why are they
adjusting like why do you have to wait tell until the end and my opinion here
because there’s no cash now it could be wrong when I make statements and anyways
I’m just I’m just a dude man I’m just a I’m just a dude okay yeah yes I do have
a CPA license yes I do do this for a living but I can make errors sure so
there’s no cash so that’s why that’s why like if there was cash in the account
then you would just be done like you would need to adjust anything you’ll
kind of see so we’re going to do depreciation it’s one of the five now
I’ve already done depreciation but that was when I started is when I was first
ranking my office here and I was like so nervous I thought you know how
everyone’s gonna hear me and I wasn’t and I’m like I’m renting office here and
I’m wasting my time making YouTube videos no one’s watching what am i doing
my life so anyways let’s give me the first on
our Justin entries depreciation at the end of the period if you’re new here
you’re going to notice this it’s a DC a blurs kind of my mapping system it’s
debit/credit assets are expense liability equity revenue
I just always put that on my paper you put it on your paper – don’t be lazy man
don’t be lazy seriously serfs don’t be lazy so let’s
set it up let’s let’s set it up here during the year I’m gonna use the book
example during the year you bought an asset you bought office equipment for
$1,800 you might have done that a couple years ago but that’s the only thing on
the books that’s on the books this is your balance sheet balance sheet is
assets equal liabilities plus equity the only thing on your balance sheet is you
have an office equipment for $1,800 assets equal why you don’t have any
liabilities and your equity is $1,800 equity of the office equipment you’ve
already you already use cash when you bought this you have debit debit office
equipment credit cash and so it’s journal entry to get this on the books
it was money coming out and you put it on as an asset so what is depreciation
anyways let’s say office equipment let’s say this is the printers the $1,800
printer that’s gonna last for a long time you have it on as an asset you
spent you spent money you spent money over here and now you have an asset for
that for the office equipment for the printer now let’s sit because that’s
going to last for years so you’re going to expense it every year let’s say you
about a paper paper for the printer now you’re going to run through that in a
couple months so yes you have cash coming out for that but you’re just
going to expense it right now because you’re going to use it in less than a
year or this part of the period when you’re buying an asset or I guess buying
something and use it as an expense that’s always that’s going to be your
debit it’s either going to be the asset it’s going to be the office equipment
the printer or the paper so let’s go ahead and your credit it’s going to be
money leaving it’s going to be your credit so years a year has gone by and
now you’re like well you know we have less time on this
printer and we need to do our expense for the year and that is a depreciation
expense so what would what would the journal entry be it’s always about a
journal entry what would the journal entry what’s the journal entry going to
be hopefully went over that so you would think well now we need we need to
expense the journal inch we need to expense this printer because it’s been
it’s been on the books for a year depreciation expense also you might just
hear you may just have heard just in life your depreciation expense
depreciation expense depreciation you don’t really know anything or you know
some I don’t know so depreciation would run over this you’re like I’ve heard
depreciation expense I know DCA blur so probably it’s going to be it’s probably
going to be right there right the journal entry here depreciation expense
$50 because we figured out we figured out for everything that we’re going to
appreciate this office equipment $50 for the year and now we’re going to
journalize or the period so we know we’re taking oh we’re taking a really
good guess because we’re not our professionals we haven’t done this a
million times yet so we don’t really know we’re just going to take a guess
and we’re going to say damn it is going to be $50 depreciation
expense all right great now we need to credit now we need to credit and if we
know we know it’s got to be 50 bucks because they always equal so look we
have no idea about much we’ve heard depreciation expense and we know DCA
blur so look look at all the stuff we’re getting right already step by step by
step practice practice practice so we’re going to put $50 over here on
the card in now here’s where it gets a little tricky here’s where it gets a
little tricky and you just got to know what is what is going to be the credit
it’s a thing called accumulated depreciation and it’s called a contra
acet meaning it is it’s an asset but it’s an it’s a negative asset you just
got to know I think for now mmm when you when you have depreciation expense the
credit for it is an accumulated depreciation okay so that is that’s the
journal entry for a depreciation is debit debit $50 depreciation expense
credit accumulated depreciation so you know look there’s no no money no cash
involved in this because you already bought the asset before so now we’re
just depreciating the asset so this is so this is your expense now do you see
like if you for the year because like when you bought paper or supply you
expense it right away but now you’re now you get an expense
you still want you still want to show here that you bought the office
equipment for $1,800 on the balance sheet see it’s a contra asset meaning it
is a credit see so it’s over here accumulate depreciation is a credit and
as you can see it’s it’s Oda if it’s if it’s an asset accumulate depreciation is
an asset because it goes along with the fixed assets it’s negative be negative
over here and that’s in its normal balance negative on the credit side
sideswipes contra so it goes it goes here as a negative and on the balance
sheet you would have accumulated accumulated depreciation for $50 and
that’s what on the balance sheet so then your office equipment is worth 1717 50
now thank you for watching thank you very much
if you enjoyed it get a like and I wonder this new new method of I’m just
trying to put out more content and let you decide if it’s good I know it’s not
perfect and I’m sorry found trying to get better every time until next time
stay blessed love y’all booze

100 thoughts on “Accounting for Beginners #31 / Adjusting Entries / Journal Entries / Depreciation Expense

  1. Dorian I have question. First, before you graduated did you get internship, or afterwards. If so what was your experience. Given my age I think I will pass on it. Starting my own business will give me financial freedom a lot sooner. I fought to keep 4.0 GPA but its so hard, and I am experiencing employer who want young employees in some management fields. A penny for your thoughts.

  2. I never thought in my life that I would enjoy learning accounting. I just took a new position in my career and have just been told that they need me to help with accounting process design….which means I better learn accounting!! I very much enjoy your videos, I've binge watched 31 in 2 days. Thank you so much for making this easy to understand and I hope you keep making more. You're awesome.

  3. Thanks man. Since you like to lift, check out Cassady Campbell kicked out of planet fitness. Its worth it…Please let me know what you think, its on youtube

  4. Can you do some videos on Managerial Accounting? or recommend a good source? You have helped me understand accounting. Thank you for all the great videos!

  5. Thank you so much for these videos! I am currently struggling through my accounting unit and life would've been so much easier if I knew about DC ADE LER!! Honestly feel like I've learnt more from watching a hour of your videos than the last 5 weeks at Uni. You are now my go to guy when I don't understand. Keep up the awesome work. Thanks, Nicole 🙂

  6. Thank you so much for these videos! I am currently struggling through my accounting unit and life would've been so much easier if I knew about DC ADE LER!! Honestly feel like I've learnt more from watching a hour of your videos than the last 5 weeks at Uni. You are now my go to guy when I don't understand. Keep up the awesome work. Thanks, Nicole 🙂

  7. I love your videos and you are a great person, keep on doing what you do 🙂 Thanks for all the videos about accounting, it truly helps a lot.

  8. It took two minutes before actually starting any work. Please for the sake of students everywhere don't take so long of an intro

  9. Fck that book and teachers who say "well did you read the chapter?" No, you POS now teach the chapters or make this class 100% online FU.
    The easiest thing in the world made the most difficult because teachers are some POS

  10. You Help me a lot. You are Life saver the chart about debit and credit it’s so much informative. Thanks universe much 🙏🏻

  11. For me, you such a great teacher, I have learned from nothing, now I understand much better. Wish you all the best. Thank you!

  12. maaan, you’re fucking awesome! this all makes so much sense now! I appreciate you & your energy. keep doing what you’re doing, your passion is tangible.

  13. Oh ya, nice intro!!!!!

    I'm on Chapter 3 and I have a quiz tomorrow about 4 different types of adjustments entries.

  14. Why do you sound like you just ran around your house and recorded the video afterwards?

    You are still really cool dude, your channel really helps me because i’m an accounting student

  15. So ive only been subbed to you for like 2 weeks and ive noticed you have gotten 2k more subscribers? Probabely all of the desperate new college students trudging through beginners accounting

  16. You don't how much you're helping me! Thank u so much 4 taking your time to make these amazing videos. Wish i had a teacher like you :(((

  17. That's the first time my accounting instructor has told me "yo, yo, yo, what up, fam" at the beginning of a lecture. I love it.

  18. Yo man we need a closing entries video. You've covered literally every single thing I've needed so far other than closing. I appreciate your work.

  19. Hey CPA strength, I just wanted to let you know you getting positive recognition from fellow accounting students. I recently finished my bachelors degree in accounting at Western Governors University (WGU). I want to brag on you for a moment. On the student forums for WGU accounting students you, EdSpira, and Professor Farhat are the top go to people for accounting help. I appreciate all you do. Thank you!

  20. Appreciate all the videos!! I just graduated with an accounting degree, but I'm still confused with a lot of concepts! These videos help reinforce what I've learnt!

  21. Pleasee help mee with this one. I'm really confuse😭

    "The notes receivable were accepted from several customers. The notes were issued on sept. 1, 2015 and will be settled together with a 20% interest on May 31, 2016." What is the adjusting entry for this?
    *Notes receivable in trial balance is 360,000
    * There's no interest receivable and interest revenue titles in trialbalance
    * For the year ended December 31, 2015

    I hope you would able to help mee for this onee. Thank you!

  22. 😂 I have a feeling you grew up as one of the cool kids who had old school Nintendo or Sega consoles my age 😂😂

    But I didn't understand the accumulated depreciation part in the end! mind elaborating? 🙂 I have a quiz soon, thank you!

  23. Do you offer free help with accounting problems? If so, do you have an email in case we need help with college homework in accounting? I'm having the hardest time and my teacher is long distance learning and I don't really learn much from her.

  24. Sooo the adjusting entry is done at the end of the year, do we need the account number for the entry? I'm a bit confused with the whole "include the account number on the general journal once posted"

  25. "Dont be lazy, Dont be lazy" kept telling that to myself for the past hour to review for our midterm exam tomorrow 😂😂

  26. hi. Am a professional as well
    Ink n toners do we expense immediately or capitalize as office supplies. ??
    Also maintenance of fixed asset should they be included as depreciation exp.??

  27. I was sleeping on my assignment till I saw this video, yo yo yo, and I woke immediately to pay attention knowing that a dude has met a dude. It worked

  28. I am just a dude trying to my business more efficiently, I learn a lot from your video. Thank you very much and I just subscribe!

  29. I love your way . But please I have a question ,I'm an new employee working on Sage ,Canadian E edition. I'm in a training stage. How we can make an adjusting entries for 2 deposit that's wrongly been dated in the previous year.But the previous year is closed and we couldnt make correction in the Receipt . How we can make this amounts be reflected on this year, not the previous

  30. Am currently an accounting student!!! I watched videos 1 – 30 before class started and it helped me alot thank uou very much!!!!!!!!!!!! Youre a part of my accounting journey till the end 100%

  31. Thanks it is helping. I would like to how to balance after journalizing it, i mean in the trail balance.

  32. I have an assignment about I think it's about adjusting entries lol not sure. Is it okay if I watch this right ahead without watching the previous vids?

  33. Sir, i have a question is that you said $50 Depreciation for a year of the printer, so $1800/$50 depreciation for a year, and that means it takes 36 years to finish the accumulated depreciation of the printer, right teacher ? I think it's, hmm… it's quite a little bit nonsense. In my opinion, i think depreciation for a month, so $1800/$50 = 36 months, so it just takes 36 months or 3 years to end the accumulated depreciation. I'm very nervous here, can you explain am i wrong or it just an example exercise ??? Help me, make me understand it clearly.

  34. I’m soo confused 🤦🏾‍♀️ I can’t get this right. When journaling an adjusted trial balance,do you subtract the to-date depreciation- equipment amount from the accumulated or is it added? And why?

  35. Again, like I said in a past video, I learned more from you than my accountings teacher. Thanks for making it easy for me

    Edit: also, I'm gonna report this topic tomorrow and this really helps

  36. When breaking everything up into T Accounts you have a debit and credit side for each? I keep messing up my entries with both sides for the accounts receivable and the accounts payable. Can you help me understand this ?

  37. I understand the videos yet when it comes to doing a practice paper I literally cannot answer anything on the ledger. What a nightmare. For some reason sales ended up in the debits on the mark scheme and I’m just like 🤯

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