Accounting for Beginners #34 / Adjusting Entries / Journal Entries / Accrued Revenue

Accounting for Beginners #34 / Adjusting Entries / Journal Entries / Accrued Revenue


yo yo yo what up fam strongest CPA in
the state of Florida I’m back again what up fam this is AFB 34 this is my classic
series this is the best accounting series in the world turning from your
nurse started for if this is your first time I will link a playlist over here to
the best place of the world if you’re back you know what it is
legging it in okay best shirt in the world is it kind of for beginners number
34 what is that train take Quattro a hair on fleek all right is account
accounting for beginners number 34 classic series boy classic series adjust
the entries time for beginners number 34 the classic series this would be if
you’re going to crude basis you drink journal entries for a crude
letter between cash and accrued its cash cash basis when you’re when the cash
hits your sticky little hands we’ll go over that later don’t worry about that
now this is just basically I’m going through
all the adjusting entries and I’d be a mess if I’d leave a crude revenue out
even though I don’t really use a crude revenue which well I got a good night’s
sleep last night so I’ll fill in one so we’re going to a crude revenue today
let’s go with the definition of a crude revenue in the book unrecorded revenue
that has been earned all right so I did some work I did some work did some work
what happens when you when you do work for somebody give money get them
chippers where might shippers at man but cash has not been received
like give my freaking money man uh you’re going to get you know hey you
do a journal and do a journal entry for for a crude revenue or it’s going to say
you know you earn the money you did the work but you didn’t get paid
what would the journal entry be it’s always the journal entry it’s always
going to be Journal true what’s the journal entry going to be what is the
journal that you’re going to be now I wrote this on my paper every day accrued
equals no cash for maybe year okay I wrote a crude equals no cash every you
know first month I didn’t know and then all of a sudden I started getting to you
know the dudes are doing general tree you earn money but you didn’t get cash
you earn you earned to earn the revenue did the work but you didn’t get in cash
and I wrote I wrote a critical little cash on my paper every day for like a
year so I just I just started seeing my pneumonic paper in my head and I said oh
cruise no cash did the work didn’t get cash it’s crude crude let’s accrue
something uh-huh so it’s accrue something let’s accrue it baby with my
pneumonic page that I wrote every day for about a year every day for about a
year and I used to write on the top of it the sacrifice hustle grind you know
they say you’re a piece of shit they say you can’t do it you should be dead about
all this stuff because I didn’t feel I don’t feel like studying every day man I
didn’t feel like going to work come home from work and studying but I read all
that stuff in my paper all right this is my paper every morning and also write
dc8 larb it’s kind of what I’m known for if you don’t know go back to old videos
DCL or debit credit asset or expense liability free revenue all right let’s
get to the problem enough talking right Nate all right a crude revenue
unrequired revenue that has been earned so I did work cash never see Brennan get
chippers accrued equals no cash that’s what you’re going to write on your paper
along with this remember if you can’t remember so
already this is starting out to be some be some trash okay because at work and
get my money how am I going to my girl how am I gonna take my girl out for that
too you know the Applebees Applebees – 420
how am I gonna do that we’re gonna get my money I’m gonna tell my girl oh we
can’t go to Applebee’s because I didn’t get paid I’m not at that Ruth’s Chris
level yeah uh December 15th so middle of the month I knew the client who say okay
I’m going to do a monthly bookkeeping for you for $100 great great JT that’s
awesome I heard the best best CPA around you heard right yes a.m. now this is
like a textbook example because if this was real life I would just prorate
somebody meaning I would just build them for half a month $50.00 on December 31st
that’s what I would do a prorate but and you know it anyway it’s December 31st
we’re closing our books we’re trying to get our we’re trying to get our the best
representation of our bar business money-wise expenses revenue what you owe
this earth in the balance sheet income statement because we’re going to go into
our CPA to do the taxes the hard thing about this is there’s no starting entry
for it you know usually the adjusting entries
there is an entry that first and then we adjust but with this one there’s not see
no entry I guess you just have an engagement letter or something so what
I’m saying is at the end of the period how would you know to write this I guess
you would go and be like oh I’ve done all this work or who owes me money I
mean I always know who was in money so I’d be like cools me some fucking money
as long as you can do 100 a month come December 31st you’ve done a half half a
month’s work for $50 you want to put that on your mango
journal entry and you want to put that on your books to have an accurate
representation of your business at the 12:31 date how how we’re going to do
this journal entry did we get any cash no that’s why we’re a crew ensure we
didn’t get cash yet damn it hate it not getting cash all right what happened
here let’s just go and what happened over here I did bookkeeping for her
Amalia now December 31st I did a half month work for $50 $50 I’m going to
start over I’m gonna start with you credit first sometimes I start with
debit sometimes I start with credit you know it just depends so I’m gonna start
I’m going to start with the credit here I want to start with a credit see it
half month of what half month to work I did bookkeeping that’s what I do every
month that’s where normal stuff that’s my revenue I am doing an accrued thing
so I’m going to count I did the work and I’m going to put revenue over here for
the credit $50 there’s the revenue positive and credit form think about
this what if you did get cash on the revenue if you did get cash you would
put it’s an asset you would put $50 cash right here done well then you you know
then you really wouldn’t be accruing anything because you would get to cash
that didn’t happen here give me the cash give me the cash man so I basically
fronted my work out you didn’t get the cash they owe you the cash you’ve been
doing examples and you know what happens when someone owes you money or something
to owes you something um it’s an account receivable account receivable we just
did a bunch of account receivables how you use that every now and then account
receivable account receivable we know is an asset and that’s going to be our
debit because we didn’t get to catch they owe us the cash journal entry here
for doing doing work not getting paid the
amount of $50 we did the work so we’re going to recognize the revenue we’re
going to put the credit is going to be the revenue we didn’t get paid we need
the money we have account receivable even though no one’s going to ever pay
us which can close the business down $50 debit if you dollars debit accounts
receivable is the debit the credit for filter revenue anyways thank you very
much for watching me again I love doing these and hopefully I am getting better
and better every time and I just love doing these I can’t please

53 thoughts on “Accounting for Beginners #34 / Adjusting Entries / Journal Entries / Accrued Revenue

  1. the rules such as dc Adler and accrual = No cash really help because they can be reapplied easily. Even defining what prorate meant helper. thx

  2. Glad I found your channel bro. I got my BA in Econ but I'm going back for a BBA in Accounting this fall. Haven't had financial in several years so these are a great refresher.

  3. Hi Jonathan! Here in New Zealand we have Goods and Services Tax of an additional 15%, so if you receive revenue of $115, do you send the $100 to Credit Revenue and the $15 GST to a separate GST account?
    Thanks!

  4. I became a paraprofessional accountant through your videos. You're a great teacher, and your quirks keep it entertaining. Thanks so much for the helpful videos

  5. wouldn't your account receivable need a more detailed name like ac-rev earned?? especially if you have multiple receivables??

  6. CPA Strength, what is the difference between accrued revenue and an accounts payable? Both have not received payment for work completed. Also why would you ever complete a transaction such as agreeing to do work, and not make a receivable journal entry at the same time? Doing work with no journal entry sounds like lazy accounting.

  7. I was disappointed after attending my last accounting class cause I didn't understand what my teacher was teaching. Then I got you! A great work you're doing. Thanks a lot! You're a savior.

  8. Thanks for every things.. I just graduated and how I can become a professional in accounting from where do I can improve my accounting what do you recommend

  9. What happens when I do receive the cash? What is the adjusting entry when the money comes in? Debit Cash and Credit Accounts Receivable? Did I get it right?

  10. Thank you for your videos, have a special request, I work for a crΓ©dit union as a mortgage underwriter, recently have been assigned to help with allowances for bad debt in our books. Can you please do a video about the journal entries for how a lender accounts for loan losses, how the accounts get adjusted moving them from at risk of default/allowance for doubtful account. I’d really appreciate your help

  11. Okay, I am struggling with how Accounts Receivable and Accrued Revenue interact and what the difference is. Can you help me to understand these two concepts? They almost seem like the same thing, except one is in the balance statement and the other is in the income statement. Please help.

  12. It appears that accrued revenue can be thought of as "earned non-revenue"… kind of the opposite of un-earned revenue.

  13. DAMN BRO..NOW I K NOW WHY YOU'RE SO 'ENGAGED'… 'CUZ YOU SAID YOU DO THIS EVERY MORNING AT 5AM..I BET IT'S AFTER 5 CUPS OF EXPRESSO, TOO!!! KEEP IT UP, BRO!!!! MORE VIDEOS, PLEASE!!! THANK YOU!!!

  14. your videos are amazing, but one question, please. why you did not make any videos for closing entry. and if you have one please tell me which number is it because I could not find it. thank you

  15. Your awesome.. thank you for all the vids your doing bout accounting it helps me a lot. Lots love from the PHILIPPINES.

  16. I just shared your channel with my whole class. I also told a dude in tutoring yesterday. I'm spreading the DC ADE LER gospel.

  17. Hi strongest CPA in Florida, my question is, how do I process the remaining $50.00 for the other half of the December?

  18. I'm sitting here tonight and trying some exercises…. I can figure out the answers, most of the time, using addition and subtraction and a bit of math logic in my head. But I have 0 understanding of the answers as they are shown in our solutions guide. I then decide to watch a few more of your videos to help bring myself up to speed beyond the readings from text book and bam! My very first solution after watching you was identical to my solutions guide. 6 hours of reading vs. 40 minutes of watching your videos. Thanks again.

    Oh, and DC ADE LER helped me zip through a midterm a few days ago!

  19. But seriously…you're by far my favorite teacher on YouTube. I actually LOL while I'm watching, but the crazy thing is I'm learning stuff so easily that sounds like pure confusing nonsense when other people teach it. Keep up the great work!!

  20. @CPA Strength you saved me in adjusting entries. Thank you
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  21. Strongest CPA!! you sound wasted πŸ˜‰ for it to be so early in the morning…LOL
    love your videos, you make it hard not to pay attention.

  22. Im not doing so good in my accounting subjects. Failed my prelim exams because i got mental blocked. Any tips man?

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