How to Prepare Closing Entries (Financial Accounting Tutorial #27)

[@aldocruz9249]

Smh a 8 minute video helped me more than a 2 hour lecture..

[@chasetommy4444]

i know im asking the wrong place but does someone know a tool to get back into an Instagram account?? I stupidly forgot my password. I love any tricks you can give me.

[@melekdschejchan4335]

Hey, found your video 10 min ago, and now I already understand closing entries! Just so you know, even after 5 years this vid still HELPS a lot!! Thank you!

[@TheME2DA2]

Thank youuuuu. Honestly, I'm learning accounting from youtube, not lectures:D

[@Specialagntbob]

You guys are gods walking among men. Many thanks.

[@saberlimeful]

I wish I had found your tutorials SOONER ! your explanations are comprehensible compared to my Canadian textbook.

[@Jside68]

Totally, I am currently taking ACCT 253 at Athabasca U. These video are way nicer!

[@mikej9325]

OMG YOU SAVED ME FOR MY ACCOUNTING FINAL WE LOVE YOU -T AND M

[@Mboy311]

Wow, pretty impressive how this 8 minute video made me understand this better than a 2 hour lecture along with 5 hours of studying the stupid Pearson slides. The only way to learn is by watching how someone does this not by listening to your teacher read slides from a company that tries to be the go-to for learning when in reality all Pearson is is a company comprised of greed and set out to ruin the lives of students by providing sloppy inferior course materials to all students at such a high price that it will keep you eating ramen noodles for months. If anyone that works for Pearson reads this, I hope that when your company is going through their books that they have nothing but net loss so we can shut this company down. I hate to say this but Pearson doesn’t deserve to be in the space they’re in nor do they deserve to exist in general. TLDR: Pearson LLC = The reason why learning is harder than it could be

[@laksh3615]

literally, me in online school right now, don't know how teachers are so stupid

[@jrisc96]

I can relate.. tbh I thought Pearson was god awful until my professor for accounting this semester made us use Cambridge Business Publishers and I literally had to buy an ebook and buy the access code twice.. once to access the prep course and once to access the homework. Also, their textbook is even worse than Pearson's.. and that's saying a lot considering Pearson's is overpriced and terribly published.

[@shakalawalker560]

Thank you!!! Why can't teachers just teach like you :)

[@allanmherrera]

+Shakala Walker What's the purpose of zeroing out accounts? I don't really get that part.

[@shakalawalker560]

Allan Herrera to make sure no one owes or is owed.

[@allanmherrera]

Shakala Walker Thank you!

[@allanmherrera]

***** Perfect! Thank you so much.

[@wendygibson2396]

Thank you for your videos, you have made it understandable and doable! I"m looking for your other videos from the beginnig and after !! I got it now!!!

[@Iceland874]

A great review. Also love the blue and green on black. It's very easy to read on a cell phone. Thanks so much.

[@natestewart8059]

Freaking KZbin! I spent a solid six hours yesterday on the homework for this section. Still couldn't make sense of how to do part 3 of the closing, and where the numbers were coming from. Quiz today got me 74%. Here I am, getting it in five minutes. Thanks, #NotePirate for making this Barney-style for me. Time to try that online quiz once more.

[@natestewart8059]

+NotePirate Got a 97% on that one. I still had trouble with the Net income (loss), and how to line it up on the Stockholder's equity on Trial Balance. I just put in a couple numbers to make it fit in the big picture. Do you have something I can view to help that?

[@shervj6745]

I wanna get my money back from school and give it to you man. thank you

[@baseballwizz1507]

More helpful than my teacher thanks a lot

[@Livilee-ii1qv]

Excellent video. Easy to understand. Thanks. Exams coming up.

[@Livilee-ii1qv]

I believe I did well in the exam. I await results.

[@Livilee-ii1qv]

Not bad. I got an A. The test was on basic financial accounting.

[@ejazjafaq]

impressive , you just make our life easier.

[@ewashku]

Would all of these closing entries effectively eliminate everything on the P&L? How do you go back later to look at all the activity on the P&L if you closed it all out to income summary?

[@wesleybarnes5376]

2020, still here. Thanks for this.

[@NotepirateDave]

Still here in 2020 too 😆 Look forward to more content in the Fall 😉

[@DerekMahar]

Excellent tutorial!

[@nicolecodegirl]

Do you add the retained earnings to the next years financial statements or the current year you’re closing out?

[@A1rborneBF3]

this video helped out a lot! Thank you!

[@TuanNguyen-ej1ze]

I am studying accounting in the U.S. I heard that you from Canada. Just wonder, if it is different between accounting in the U.S. and the Canada. Thanks

[@krish7273]

Thank you so much! I need this today

[@kaltiny1997]

So what would you in a retained earnings statement if net income is actually a net loss? Would you add the net loss amount from beginning retained earnings or subtract from it?

[@jordanpower5568]

cheers mate very helpful

[@clairekug5709]

Made me so happy. Thank you.

[@clairekug5709]

I had to miss class due to some personal reasons but I’m so glad this video helped me make up for those missed days in class. My grades really suffer when I just learn from the text book. This was very helpful!!!

[@Nofearnofavor]

Hi Bro, is Owner's withdrawal the same as dividends? shall we also close it as temporary accounts?

[@bake2038]

what is we have previous retained earnings of some balance? does it changes the third part?

[@abdulmukhtor59]

Helped me a lot. Thank you😁

[@mechanicsjustsucks]

Great video, I did have a question though: If dividends are supposed to decrease total earnings then why are retained earnings debited (and thus increased) when closing the dividends account?

[@Foody-j4z]

Cause retained earnings is decreased by dividends that is why it is debited and dividend is credited.

[@neerajkhurana8538]

When Retained earnings are increased, Credit balance of Retained earnings also get increased, then dividend hast be paid out of Retained earnings itself, so dividends are credited and retained earning is debited for same amount. Hope that cleared your doubt.

[@FreedomTalkMedia]

If you pay dividends, you'd have to credit cash. If you already credited dividends, what would you debit at that point? would you just debit the dividends? That would zero them out.

[@gagehorton3748]

This helped so damn much, thanks

[@lorenzofranco8406]

Would've kinda been helpful, if you mentioned that the transactions recorded in green on the left were the journal. Took me a fair few minutes to figure it out. As soon as you do, it's relatively straightforward.

[@lorenzofranco8406]

***** That's very valid rebuttal. However, to beginners, it can be somewhat.. confusing. Especially, when income summary is not your average account (referring to its intermediary role in producing the income statement).

[@josiahdrake1308]

what if its a common stock and say to prepare the closing entry for net income

[@andreaknight8417]

Thank you, thank you, thank you!

[@nataliogonzalez306]

great video!

[@diagmelphilipc.5956]

How do you get 1, 000 on the retained earning and dividends? 😊

[@BigJoke94]

Great video! Wish you were my professor lol!

[@bluetofu1654]

Very helpful, thx a lot!

[@JustKiiro]

are drawings the same thing as dividends?

[@nagarajukonduru5094]

Kiro yup, aka withdrawals as well

[@pasta3166]

What about post closing trial balance?

[@kimboslice1356]

How can we get access to Lesson 26?

[@Dualblades47]

thanks man, good vid

[@TetelestaiStudios]

I got a test on this in like 6 hours come take it for me plz

[@TetelestaiStudios]

fuckin murked that test son!

[@connecteddthoughts]

Wait, so even if your net income is negative, you would still debit the retained earnings and credit the withdrawal/dividends? Why?

[@brendanmcgreevy595]

Thanks man!

[@allanmherrera]

Great video! I don't understand what the purpose of zeroing out these accounts is, though. Can anybody help?

[@natestewart8059]

+Allan Herrera Each fiscal year needs to report its own earnings. That way the company can tell if it is earning money or losing it versus any other year. Keeps them following the success or failure by way of money.

[@allanmherrera]

Nate Stewart Thanks! I get it now.

[@MoeMerkin]

What's the point? It's just the inverse of the original table?

[@miguels8721]

Covid 19 got me here ngl tho this do be more helpful and simpler

[@imaginerreal]

hopefully we can be success for filling time by learning.

[@brentonakoname1902]

is dividend the same with personal withdrawal??

[@brentonakoname1902]

***** yes.. thanks a lot!!!

[@mashenxa9841]

I read the text book over and over and couldnt grasp it. Watched this video once and am able to do this EASILY. T h a n k y o u!

[@nabartayeian6067]

How if there is no dividend given?

[@mythaelle]

I paused this video a bunch of times and managed to fully understand this in 20 minutes .... whereas I learned next to nothing in my hour long lecture -.-

[@hudaf.a2487]

thank you so much

[@_DBO]

What about accounts payable? Or salaries payable?

[@NotepirateDave]

Remember that accounts payable and salaries payable are permanent accounts that exist on the balance sheet. We only close temporary accounts which include: revenues, expenses and dividends!

[@abiem8523]

What if there are no dividends declared?

[@NotepirateDave]

If there are no dividends then you have no account to close since there wouldn't be a balance!

[@surejsan]

Thank you

[@NM-cz5tu]

My teacher has us doing it DR Supplies Exp. CR Supplies, DR Insurance Exp CR Prepaid Insurance, etc. why are you doing it a different way? Are they both right?

[@SaintNick420]

Who else is here the night before a test?

[@MMABBasiRaja]

Best!

[@sidra9610]

love it

[@davisebel3305]

Whoever is reading this is going to pass their accounting exam

[@cartince]

shout out to you bro

[@NotepirateDave]

🙌

[@MrSafi-zo7mb]

wait, Revenue is credit and you should debit it. You entered it as a debit and credited it.

[@claraaguilar8972]

Tkm

[@somaligaming4469]

2022 watching

[@Ravico]

i hate accounting

[@Ravico]

Notepirate everything I couldn’t graduate cause I failed accounting 1 and 2

[@Peter-bg1ku]

Too slow - watched at 1.5x - but great video nonetheless :)

[@ilznw2840]

Thank you so much