DEPRECIATION BASICS! With Journal Entries

💥Depreciation Cheat Sheet → accountingstuff.com/shop
In this video you'll learn how Depreciation works in Accounting. We'll work through a Straight Line Depreciation example and explore the Journal Entries that need to be posted. Others depreciation methods include...
▪ Straight Line Depreciation Method → • STRAIGHT LINE Method o...
▪ Double-Declining Balance Method → • DOUBLE DECLINING BALAN...
▪ Sum of the Year's Digits Method → • SUM OF THE YEAR'S DIGI...
▪ Units of Production Method → • UNITS OF PRODUCTION Me...
This episode of Accounting Stuff is part of a mini-series on Depreciation in Accounting. You can find the link to the whole playlist here ⬇️
🔗Full Depreciation Playlist → • How to Calculate DEPRE...
🔴Subscribe for more Accounting Tutorials → geni.us/subtothechannel
⏱️TIMESTAMPS
00:00 - Intro
00:29 - What is Depreciation?
01:09 - Why do we Depreciate?
01:11 - Accrual Method of Accounting
01:43 - Adjusting Entries Definition
02:03 - How does Depreciation work?
02:21 - Capitalization Definition
02:43 - Depreciation Methods
03:39 - Depreciation Schedule
04:01 - How to record Depreciation using Journal Entries
04:05 - Journal Entry Definition
04:11 - DEALER (Accounting Acronym)
04:43 - How to Capitalize an Asset
06:28 - How to Record a Depreciation Expense using Journal Entries
08:03 - Contra Asset Definition
10:36 - Clearing Journal Entry
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#accounting #accountingbasics #accountingstuff

[@AccountingStuff]

What should we cover next?? TIMESTAMPS 00:00 - Intro 00:29 - What is Depreciation? 01:09 - Why do we Depreciate? 01:11 - Accrual Method of Accounting 01:43 - Adjusting Entries Definition 02:03 - How does Depreciation work? 02:21 - Capitalization Definition 02:43 - Depreciation Methods 03:39 - Depreciation Schedule 04:01 - How to record Depreciation using Journal Entries 04:05 - Journal Entry Definition 04:11 - DEALER (Accounting Acronym) 04:43 - How to Capitalize an Asset 06:28 - How to Record a Depreciation Expense using Journal Entries 08:03 - Contra Asset Definition 10:36 - Clearing Journal Entry

[@r.a.p.h4481]

While we are in the kitchen anyway - how about cooking the books?

[@ibu673]

Hi James, Can you post a detailed video on Investments in Equity & Debt Securities? Great channel btw. Thanks!

[@PROEKT_13]

BAD DEBTS AND PROVISIONS FOR THEM !!!!!!!! God, i dont really understand this topic( Please James, i'd REALLY appreciate it

[@hley1986]

Please cover gain or loss on disposal

[@princewokeh4942]

Public finance

[@bman6751]

Sitting in college for 4 years and I've learned more in 2 videos than my entire time here. I am almost positive they over complicate text books.

[@mistermystery819]

They do and Infact since I have been watching his Vids I have surpassed my Books so to say and Aced EVERY test I dont even study from my books anymore.

[@sapsalingpusacattalkmaykwe1556]

Wow hoping to ace mine too. With this tips here i almost perfect mine.

[@marthadelossantos3918]

You ARE Amazing, Cool and SO INTELLIGENT💯Every subject with your invaluable explanation comes to be a piece of cake!🤗🙋‍♀️

[@thedekunutt8982]

It's because colleges have the wrong incentives. Accounting Stuff needs to make engaging interesting videos that have value in order to keep you here. Colleges already have your money and don't care about making the material engaging. It's a big reason why our education system is broken.

[@omidfarhad1685]

[@mo-ju4zk]

Hey man, i just wanted to say thank you, REALLY. i passed my exams while i was really late in my revisions thanks to your videos.

[@AccountingStuff]

Hey Mohamed, that's fantastic news. Congratulations!

[@silentkidd8882]

I'm late in my revision right now dwl

[@sapsalingpusacattalkmaykwe1556]

Wow congrats

[@blast2686]

This is probably the best intro on KZbin I've ever seen

[@AccountingStuff]

Thanks buddy, I'm glad you enjoyed it!

[@aarontaylor6464]

Be honest who has told their professors that YT- James, Accounting Stuff content had help them to better understand accounting than their confusing course materials? ✋

[@a_la_mads]

Is it just me or does Accounting make more sense when explained in an English accent.... lol fr thx for sharing these informative & concise vids

[@mulalondadza1148]

You are one of the best accounting tutor ive seen in KZbin.... mostly due to the amount of work u put in your videos, i know it takes a lot of hours just for 5 minutes video with that i truly appreciate your talent..... THANK YOU SO MACH 🙂🙂🙂🙂🙂🙂🙂🙂I TRULY ENJOY ALL YOUR VIDEOS...

[@AccountingStuff]

Thanks Mulalo, that's kind of you to say. Yes the videos take a long time to put together. But if people find them useful then it was worth it :)

[@jennymulhall816]

I’m about to sit my first year financial accounting exams in two weeks and your videos and cheat sheets have really helped me wrap my head around some really complex (to me, anyway) accounting concepts. Thank you very, very much, James! ❤️

[@AccountingStuff]

No worries Jenny, best of luck! Hope you ace them

[@willjackson6202]

Dude I appreciate you making these so much man. Phenomenal pace, enunciation, simple explanation, appreciated hours of editing (I can tell, mate :)) and this is so helpful for my class. You are a blessing thank You so much

[@AccountingStuff]

Cheers Will! Glad you enjoyed it!

[@amandajennings8726]

Yes please, cover P&L on disposal of assets...that would be really helpful to me. Thank you!!

[@AccountingStuff]

Cheers Amanda!

[@kishangohil8089]

Yes please cover disposal and parts exchange of assets! Thanks

[@patrickrussell4380]

Yes please!

[@SycoVFX]

Did u guys find anything for disposal and trade-in?

[@22Ruffet]

Your videos are brilliant man, went through all kinds of content today to try and figure out how depreciation translates on the balance sheet, and your video is, by far, the clearest and most useful.

[@monch2436]

Thank you for this channel's existence! I really learned a lot in the past 2 hours watching. I probably learned more today from your videos than last year learning it from school. Your explanations are simple and easy to understand. Thank you so much and keep up the good work!

[@maverickacres399]

I just found your channel and I'm about binge watch like I did the Walking Dead. Your videos are clear and well organized, and time stamps too. Wish I found this years ago.

[@dhirajshetty483]

it took me 3 days to fathom on my own what you sorted out in 11.23 mins ! thank you for the superb video ! for an Audio Visual learner like me your videos are a Godsend ! could you please teach us Disposal accounts too !

[@AccountingStuff]

Great to hear it's making sense! Thanks for your request :)

[@chrisrobbins3888]

These videos are so good that it’s making me interested in accounting as a non-accountant. That’s very powerful. Great job mate.

[@AccountingStuff]

Cheers Chris, glad you're enjoying them!

[@tylero1595]

So glad I found this channel. I’m currently diving into an accounting degree and this has helped me immensely. Keep it up!

[@AccountingStuff]

Cheers Tyler, best of luck with your course. Hope you smash it!!

[@stllexi47]

I just found you and I wish my semester wasnt over! This has been extremely helpful!!!!

[@catiagm83]

Watching your video I realise how useless and complicated my accountancy books are. You make it so simple and easy to follow and by the end of the video I totally understand what depreciation is and the journals. You are amazing! You gained a new subscriber! Carry on like this as you are doing a great job and thank you very much!

[@AccountingStuff]

Great to hear you're finding these useful :)

[@tusharkana5424]

that"s awesome james! very comprehensive introduction on depreciation.

[@AccountingStuff]

Cheers Tushar!

[@simmisgeorge7299]

Such brilliant attention grabbing organised way of explaining things. I'm a 20 year veteran of accounting and a professional but I enjoy watching these videos on basics of accounting

[@AccountingStuff]

Thanks, glad you enjoyed it!

[@buddabreath]

Nice work James. I bought the whole bundle to support you.

[@darioseg603]

excellent explanation. Easy to listen to with clear language so as to ensure understanding.

[@saddestdayever1276]

I love this dude! Best teacher ever in Accounting, sir! I appreciate your thoroughness and explaining everything! Currently in Intermediate Accounting 1 and just couldn't ever grasp the Depreciation concept for the life of me until I watched your videos! 😂🤣 Thank you!

[@Nathan-vn5tg]

Love this channel. Helping me a lot on my road to accountancy.

[@AccountingStuff]

Cheers Nathan, all the best!

[@azizkreidie6509]

Its my first time to check accounting videos on youtube and went through many random videos and then I found my self spending hours on your videos, honestly you own a school on youtube and I joined it already, thanks a lot for your great work

[@AccountingStuff]

Thanks, I'm glad you're finding these videos helpful! All the best with your studies :)

[@ashleyguaman3145]

I've been so lost with deferrals for the past week and THIS video made it so much easier to understand. THANK YOU SO MUCH!!!! :')

[@AccountingStuff]

No worries Ashley, you're welcome :)

[@JurgaBurgaFlintines]

This video is better than any accounting textbook I have read. Easy to understand and good visuals!

[@AccountingStuff]

Cheers, all the best with your studies :)

[@piyushmisra1812]

I'm trying to clear CPA 5 years after finishing college. My current job has very little to do with accountancy. I had to start from the very beginning and I fortunately found your channel! You have no idea how useful and just fun these videos are to me :) Many thanks!

[@AccountingStuff]

Good luck! You must be getting close now

[@monkeylambo1661]

Great video, I can’t wait to see how you manage the gain & loss after the depreciated asset is sold. Keep up the good work!

[@clee4362]

Love the way you present, very easy to understand. Thank you!!!

[@AccountingStuff]

Cheers!

[@TheMelanie04fol]

This is great. Im a visual learner. Thank you!

[@BeckySaifMusic]

I'm so glad I found you!

[@DRISHTINARANG-ng5dn]

@AccountingStuff YES PLEASE! (my answer to a gain/losses on sale video) Your material is an amazing refresher to my classes at Comm College and I'm not studying for a more complex interview for an internship. Thank you!

[@hkr5442]

Yes please! So much needed!! & THANK YOU

[@christinaahn1887]

That was long, but makes so much sense!! A million Thanks.

[@TheRobbo007]

Incredibly informative, educational, relatable and fun to learn! More please?!

[@AccountingStuff]

Cheers bud! Plenty more coming soon :)

[@VS-2002]

Your videos are incredibly helpful in revising my knowledge of Accounting!!! I was so worried that i forgot the basics haha

[@manochasurbhi2010]

Hey James, I am from a non-commerce background and going to start my MBA soon :) All your videos are super helpful and clear ! Hats off. As a suggestion-Could you please cover the topic of 'Bad Debt Expense' - How to set up allowances, effect on both sides of balance sheet, how to write off, etc.

[@AccountingStuff]

Hey Surbhi, thanks for your suggestions! Good luck with your MBA. I hope it goes well :)

[@gurpreetsinghnandhra]

Real good stuff, thank you!

[@henryknowlesiii4857]

I love your videos. They have really helped me study for my competency exam that I have to take in July because I’m transferring to Florida State as a junior this fall as an Accounting major. I think Accounting is my true calling. I have a love for money and how it’s used and tracked in a business. It’s just fascinating to me. KEEP UP THE INFORMATIONAL CONTENT BROTHER!!!!

[@AccountingStuff]

Thanks, it's great to hear that you're finding them useful. Best of luck with your exam! Hope the move goes smoothly

[@MrNnete]

Thank you Man. Genuinely, Thank you for your content. This is changing our business.

[@Geosoria]

You make my accounting life so much easier with this videos. Thank you very much!

[@AccountingStuff]

No worries Georgina, I'm happy to help :)

[@MwaleZacharia]

Thank you so much, you make accounts to be less complicated,, you are the best

[@sapsalingpusacattalkmaykwe1556]

02:58 this is our topic last week. Ty. I know I can count on your channel.

[@partharora77]

Another awesome video! Just purchased your cheat sheet bundle! Looking forward to the revision now! Thanks!!

[@AccountingStuff]

Hey Parth, cheers for your support! I hope you find the cheat sheets helpful. All the best with your revision!

[@gordwilkes]

These videos are on point... I really appreciate the effort put into the production of these videos. I'm new to bookkeeping and I've use several videos as a helpful resource for some coursework I'm presently doing in a bookkeeping program... Thank you.

[@AccountingStuff]

No worries, best of luck with your coursework! Hope it's going well :)

[@user-gi1bf9yq5i]

Thank you for letting me know about debits and credits, how it increases and decreases and where to debit it and credit it. Really appreciated :)

[@AccountingStuff]

No problem, great to hear it's making sense!

[@Lorato_lee]

I would like to thank you for all the videos you have posted. They have helped me understand Fin acc and I can be confident that my exam today went well. May you never grow weary of what you are doing.

[@AccountingStuff]

Hey Lortato, I hope your exam went well! Hope you're keeping safe

[@Countrycharm17]

Thank you so much James! As a visual learner your style of teaching with the graphics is just amazing! Subbed and will be watching more of your great videos!

[@AccountingStuff]

Cheers Carol! Great to have you on board :)

[@Countrycharm17]

@@AccountingStuff Thanks James! I just purchased the all in one cheat sheet and am working on depreciation. As a creative, accounting hurts my brain! I'm determined tho😁

[@hamzali84]

thanks bro... really appreciate it. been trying to do accounting for wife's company and this is a life saver. everytime i learn something new in accounting, i always thought why didn't i think of this before.

[@AccountingStuff]

Glad I could help :)

[@cookie12986]

Great channel, this really helped me a lot. You have great talent for explaining things clearly! Props to your video editor as well :) (If that's you as well then you're really a legend friend)

[@yyrurh]

I Love Your content!!!!! I pray your channel blows up real fast. You deserve it!

[@AccountingStuff]

Cheers for your support :)

[@medinalunger2759]

Please cover Gains/Loss that would be amazing!! Your videos help me out a lot and my classmates. Especially since we are all working online now instead of in school setting. Your breakdowns are awesome. Would you consider adding to depreciation series by adding something about when estimated depreciation changes after a year or two within the useful life and needs to be accounted for?

[@AccountingStuff]

Thanks for your suggestions! It must be tough studying from home. All the best

[@Lele-qk3rd]

This channel is going to save me this semester. THANK YOU😭❤️

[@cdgarzon1]

Yes! please cover the case when there is a gain or loss at the end of the asset useful life. These videos are amazing 👏 Thank you

[@AccountingStuff]

Cheers for your request!

[@sapsalingpusacattalkmaykwe1556]

Have to watch this all over since we just only have limited time. Our online class is quite tough but this video and all is very helpful.

[@anhlenguyen404]

Great explanations as always💖

[@catherinepham3999]

Well-made video content that makes it so easy to understand. Highly recommended. 5 stars!!

[@AccountingStuff]

Thanks, glad you enjoyed it :)

[@defuwang24]

Omg bro u literally saved my life by discerning what I spent 4hrs on learning but still feel confused. Thank u for these videos N Pls make one about disposal!

[@DavidetaraborrelliIt]

Your videos are fantastic, thank you for making them! I can appreciate how depreciation works (pun definitely intended) and how to do the entries in the journal. But what are the adjustments we need to do in the balance sheet? Thank you if you'll answer my question :)

[@Elhungarorey]

Really great video, straightforward and easy to understand. Thanks

[@AccountingStuff]

Cheers David, glad you enjoyed it!

[@ridamomin9967]

in the start of the video I thought its an ad cause mostly I don't find accounting video's like these and i really appreciate the way of explanation and it really helped me tysm

[@AccountingStuff]

Cheers Rida! Glad you found it helpful

[@eliasrios5808]

I love this kind of videos, the explanation is clear and effective.

[@AccountingStuff]

Cheers Elias, great to hear you're enjoying them!

[@ariah5093]

God bless this man, and thank God we live today with ready available information/teachers for free

[@r.a.p.h4481]

Congrats for 100,000 Subscribers ! :)

[@AccountingStuff]

Thanks :)

[@f.s2779]

Happy to discover your channel. I have just started watching your videos 2 days ago, like it very much. Keep on and all the best. Will support and share your videos 👍

[@AccountingStuff]

I'm happy to hear that you're enjoying the videos! All the best

[@naomikibret7704]

You are a great teacher man I'm one step forward from the students in class And I'm suggesting your videos Thank you Lots of love 👍

[@Abdullahs_World]

Excellent way of explanation!

[@europa6497]

I am very thankful to you. I am from India and preparing Chartered accountancy course. I found your videos very helpful in understanding basic concepts of accounting.

[@AccountingStuff]

No worries Shreyash! I'm happy to help. Best of luck in your course, hope it goes well :)

[@LuceliJItza9]

You are really awesome! I love your videos. The way you explain wow it's wonderful! You make accounting very interesting. Thank you

[@pigeonhunter861]

I usually find accounting really boring, but these videos are really brightening up my studying experience.

[@bedokhaled9628]

A video about the different branches of accounting and the objectives of each one please, will be super helpful

[@AccountingStuff]

Hey Bedo, thanks for your suggestion :)

[@bhavikamoningi3845]

hey James I'm starting my bba soon and your videos are really helpful and amazing and now I understand the concepts clearly

[@AccountingStuff]

Best of luck with it!

[@seven5522]

We need easy to understand videos on consolidated statement. Love your content btw

[@nelinijayasinghe742]

thanks again for making me understand this jumbled and puzzling accounts.looks good James

[@AccountingStuff]

No worries, hope it's making sense

[@rosyk5549]

Thank you, Thank you, Thank you! My accounting course became way easier since watching your videos. Would love to see a video on disposing of assets along with the journal and ledger entries. Also got all the cheat sheets and they are so helpful. Keep up the great work! :)

[@AccountingStuff]

Hey Rosy, thanks for your request and cheers for your support! All the best in your course :)

[@flint476]

Great overview. Keep up the great work.

[@AccountingStuff]

Cheers, glad you enjoyed it!

[@Roblox_Raya877]

Hi, you are making great videos! Please continue with the gain or loss on disposal, revaluation of an asset and also please consider posting a video about different accounting periods-like year end, financial year and company's year end. Many thanks

[@AccountingStuff]

Thanks for your requests!

[@mohamedgamal9903]

Thank alot man for your great effort

[@vegaswoman7020]

Your Killing me James!!😫😣📉💰

[@ssnhra]

i got my igcse exam coming up in nov and im stressing out big time. until now i was relying on my grade 8 unmindful notes and now youre giving me so much hope!! i really want to ace it and thgese videos are so helpfu;l!

[@AccountingStuff]

Hey Sunehra, best of luck with your exams! You've got plenty of time to revise and nail all this stuff down. Hope it goes well

[@spamaccount5059]

Your videos are amazing!! Yes please cover the gain/loss on asset disposals and how those JE's look! I think that would be really valuable. Thank you!

[@AccountingStuff]

Cheers for your request :)

[@deanderksen3455]

Definitely need that video explaining how the gain/loss of a sale affects the cash flow statement!

[@AccountingStuff]

Cheers for your suggestion!

[@littlemint6784]

I appreciate this video. It is really helpful and easy to understand. Thank you!!

[@AccountingStuff]

Thanks! Hope it's all making sense :)

[@malihamaliha2928]

Thanks a lot for your videos. It helped me a lot! Keep it up ^^

[@AccountingStuff]

Cheers, will do :)

[@sapsalingpusacattalkmaykwe1556]

You're truly God sent.

[@mikedobson6067]

Great videos, keep them coming please!

[@AccountingStuff]

Cheers Mike!

[@DJDestruction601]

I have to tell you man! You are a Gem!

[@AccountingStuff]

Thanks buddy

[@boblamerine3116]

Had no clue why depcriation worked as a great tax write off for assets. Tried reading everything I can online and still didn't get it. Two minutes into the video, I completely understand now. Great video! New sub.

[@venkateshpitla1074]

James your a pro man at editing and explaining topics in detail 👏👏👏

[@AccountingStuff]

Thanks buddy!

[@metaren8829]

When you signed up for a 6 week college accounting course. Needless to say, these videos are saving my life.

[@100AcreWoodz1]

These videos are the best keep em coming.

[@AccountingStuff]

Cheers Timothy!

[@r.a.p.h4481]

Dude, your editing is more and more like a Holywood movie! Awesome!

[@AccountingStuff]

Cheers mate!

[@marciliovazzoler9761]

@@AccountingStuff What's the software you use to edit your videos if you don't mind saying, please. Thanks

[@SergiuM42]

Fantastic video, very informative and clearly explained. Thank you!!

[@AccountingStuff]

Thanks buddy :)

[@nafiskhan8801]

Best channel for study help

[@ms12earth]

Hey, I just wanted to say that you are one of the best educational KZbinr. I love your videos. Your videos are soo interesting, like the connnttrrraaa aaassseeettt

[@AccountingStuff]

Thanks!

[@ms12earth]

@@AccountingStuff No problem. As a KZbinr myself, I love your videos. My Channel name is MS12 Earth

[@snagrecords3082]

exactly the information i was looking for, thanks mate

[@AccountingStuff]

No worries! Hope it's making sense

[@sahartheartist]

Thanks much ☺️ I've been asked about it on my last interview

[@AccountingStuff]

Hope your interview went well!

[@VS-2002]

Neverrr stop making videos man

[@munguryash5271]

I wish you were my accounting teacher, your videos are very well made,with excellent explanations and examples.This channel is helping me understand the basics of accounting and I really appreciate your great work. Keep it up!

[@AccountingStuff]

Cheers Mungur! Glad you're enjoying the videos. All the best with your studies!

[@munguryash5271]

@@AccountingStuff Thanks