Closing Entries

[@MyFinancialFocus]

This was one of the topics that I struggled with earlier on, but I get it now thanks to this channel :)

[@sazopro]

You can pretty much get Certified as a Bookkeeper on your own with these videos and a good accounting book at hand!.

[@icecold1805]

Well I dont think you can pass a CPA exam with this but... I think if you seriously learn all that he teaches here, and hit some books on the side, you can definetly get a Junior job in an accounting firm or any company that needs an accountant. Technology and changes in GAAP and the IFRS have made learning accounting, at least in the US and countries that follow the International Financial Reporting Standards extremelly straightfoward, altrough I don't want you to underestimate how much there is to learn about it, if you wanna become an expert in the subject.

[@rowanwood5397]

excellent teaching skills

[@marianeladiaz9]

Thanks for making this topic so clear to me... Intermediate accounting 1 is kicking my but!!! lol

[@icecold1805]

So it goes like this: Revenue - Expense = Income summary. Income summary - Dividends paid = Retained earnings Revenue (Expense) ------------- *Income Sumary* (Dividends paid) -------------------------- *Retained Earnings*

[@semhasheela8894]

Made it easy to understand, thanks.

[@hassandiab9626]

Thank you for your awesome explanation. Based on this topic what if the firm makes a net loss then What is the journal entry??

[@Edspira]

If there was a net loss, your T-account for Income Summary would have a debit balance. In order to zero-out the T-account, you would debit Retained Earnings and credit Income Summary.

[@kimberlytim8193]

6:56 "let's just make this T-account for ETTT! :D"

[@beautyjournal217]

Love it

[@ayushiverma3292]

you are amazing

[@tedoymisojos]

Thank-you

[@Edspira]

No problem!

[@judygirl9126]

Thank you so much for ur videos!!

[@apurvasingh9695]

AWSM ONE THNKUUU SIR IT HELPED ME ALOTT

[@modupeolukanni2027]

Does it matter which side you put the 0 on the t account??

[@sherrywen1067]

Very thankful!

[@Edspira]

You're welcome. Thanks for watching!

[@cheeplestase9936]

For purposes of the CPA exam, I am guessing that they want us to use Income Summary?

[@shareefmohamed7109]

Very Nice...Thank You Very Much

[@sam56094]

i thought income summary is closed to the capital account, and then drawing is closed

[@danielsodden7728]

when you say dividends you mean paying dividends? or receiving

[@Edspira]

Paying dividends. Sorry, I should have been more clear! If your company pays out dividends, then the dividends account will need to be closed out at the end of the period. The "Dividends" account increases with a debit, which means to zero it out you will credit Dividends and debit Retained Earnings (because paying dividends out reducing a firm's retained earnings). Hope this helps! Best wishes :)

[@dilshoddubai7197]

@@Edspira Can't we record a dividends payable (liability) account when dividends are declared? Dr RE Cr DP? You consider it as expense when you recorded in the income statement?

[@dilshoddubai7197]

@@Edspira you did the same entry in another video - post-closing trial balance, I didnt underatand

[@aeatamjad1905]

رائع ...اكثر من المعقول

[@SZHProGamer]

whoever invented accounting... lol

[@ravecultur]

a complicated being for sure!

[@Iluvmydogs128]

Lol Ryan is pretty funny

[@Kaiju-j2f]

4:08-4:11 Just.....nah. Lmfaoooo.

[@alumi9818]

Isn't Retained Earnings just Earnings - Dividends? Why are you then zero-ing it out with a Dividend, lol.