Depreciation and Accumulated Depreciation - Ch. 3 Video 3

[@MrPCVajj]

i think i learn better on youtube than in class.

[@MisterKaliwete]

hahha me too. that's why im here..:):)

[@adriangrom9494]

Agreed. It frustrating that I pay my college to learn from youtube .

[@pootlovato8285]

Orange Juice same

[@TheFedericohiguain2]

none none every time lol

[@Ambient_city]

Excellent teaching method! Please keep producing more videos on accounting. mattfisher64, you da real MVP

[@marcosgva]

Sometimes you go slower than i would like, but you are the best teacher of financial accounting i have found by far. Thank you!

[@livelovelearn83]

Thanks for he time you put into these, they have really helped me out. D.E.A.D, new one for me and I will never forget it now :D

[@Ebony1095]

Whoa! This was a very simplistic way to understand this topic... I now comprehend it! ;-) Thank you for your indebt knowledge and simple translations of accounting!

[@ilikebutteredtoast2677]

I've been watching your videos seeing that it's a tad hard for me to understand my professor when she explains the material in the book, and I don't do well with reading text alone. I like how you're able to break it down and make it not as scary and daunting.

[@administrativeaccounting3953]

Thank you so much for your explanation! You are an awesome teacher! Sometimes a refresher is nice when the brain is too tired to cooperate! :)

[@jenniferbanda7625]

Mr, thank you so much for simplifying this!!! you saved me from a huge headache

[@rachello80]

oh, u save my life! i spent over US 6k to study accounting but it made me confused. I finally understand what it's after watching your video in 1 day!

[@cheneyperry-hill2978]

Thank you for finally explaining if I also subtract the depreciation from assets! You rock!

[@randomx6t9]

you are such a great teacher! I have an exam tomorrow and i've used your videos to help me with the concepts.

[@oliviareyes4041]

These videos are so helpful, breaks everything down and makes it understandable!

[@amandacook692]

These videos are so helpful! He explains the concepts in terms that are easy to understand and follow!

[@firstreviewer8966]

Some of these Accounting concepts are a little difficult to pick-on to say the least: however, for me, going over and over the same path and procedures seems to work for my slow brain power. I must say this is an excellent video, and you are an outstanding instructor. Keep up the good works and we all (want 2B CPAs) will always be in your Debt. FR

[@game2game101]

Thanks for giving your time to post this video mate, it helped alot and made my day easier.

[@mrcaveman914]

awesome video, didn't understand this concept whatsoever before but you made it so clear! thanks!

[@mermaid6739]

I never understood these terms until after this video, i will have to recommend it to my accounting teacher!

[@colemankj]

6:12 and then he smiles. oh the greatness in this man

[@kendrar.duvallrnmsnmbacen8701]

Thank you for the D.E.A.D. pneumonic. I like that you used car purchase as an example. I am going to look at the depreciation of my own vehicle.

[@michellebui8486]

Great teacher. your videos are a lot easier to understand than textbooks

[@CWTHenrik]

I never understood what my lecturer said in class! But I understood what Mr. Fisher is talking about! Thanks!

[@tipsybunyip]

Better teacher than my uni lecturer. Maybe I should skip lecture and watch this guy instead.

[@RaisingBaltimore]

By crediting a contra asset account you are actually increasing its total. I get that now. Thanks!

[@Fudgeey]

Just in case anyone else is as confused as I was: The Prepaid Expense column and Unearned Revenue column have nothing to do with the vehicle asset example he's demonstrating, just ignore the labels at the top of the board!

[@panchin0036]

LMAOOOO broi was SOOOOOO confused, thanks!

[@ube-23s]

Thank you, I was trying to figure out what's that to do with prepaid expense I don't see any cash or any other transaction that makes it prepaid thank you very much. I notice a lot of people say wow, I like the way you explaining thank you thank,you, but they really didn't understand it. They are just beginning to learn and they get excited.

[@mickeyteller]

Mr. Fisher...you da man!!! Those 8 who disliked need to just give up on life. smh

[@dannyjohnsonsgarage]

Very good videos. Thank you so much!

[@Wrckless]

What happens when you sell the vehicle before it is completely depreciated?

[@faheemraqib1035]

Well explained Matt, question since the vehicles account needs to be credited for the amount that the vehicles have been depreciated what would be the debit entry to the vehicles asset account

[@harderheart]

Thanks a lot for your clear explanation and teachings :)

[@thebeast1897]

How would you find out the salvage value of whatever the asset might be?

[@lovedieyoung2846]

thank you for your awesome video :) It makes my life easier!!!

[@999wali]

What order would it have on a trial balance? My professor is a real stickler on order of accounts

[@JoseSanchez-et6qx]

Very well explained!!!! Thank you!!!

[@victorperu89]

i understand that acc depreciation is asset, what about depreciation expense? would that be expense under owners equity?

[@anishab734]

Thank you so much. I understand it much better this time.

[@mikeetan1055]

You're a life saver!!! Thank you!!

[@mattfisher64]

Mikee Tan Please visit my channel on KZbin called Online EdVantage. I have better quality videos on this channel. Look at the two accounting playlists for all the accounting videos. Thanks for your post!!

[@mikeetan1055]

@@mattfisher64 noted on that! thank you!! been binge watching your videos since yesterday!

[@galgall1]

Thank you this really helped me out!!

[@erickberroya]

why did i not find you sooner! i have an accounting exam in 3 hours!!!

[@MRpitbulldog1]

thanx sir i realy hope that you get paid for this thank you

[@wokkiedoodah]

where do you do this though? On the income statement or balance sheet?

[@mattfisher64]

The adjustment affects both the income statement and balance sheet. Depr exp is an Inc st account while accum depr is a contra asset acct on the balance sheet

[@wokkiedoodah]

@@mattfisher64 thank you!

[@ALPHABETSCOOP]

i am grateful for this video, annoyed by the cell phone that keeps buzzing

[@rasharazak2602]

Thanks for explanation ! Made the concept more clear :D

[@arif.daudzaiarif.daudzai9996]

Dear respectful teacher, If we use years for depreciation calculations, please ensure that the depreciation is calculated accurately based on those years. Alternatively, if we need to calculate depreciation more precisely, we should use the exact number of months. This approach will help in implementing the accumulated depreciation correctly. Best regards, Daudzai

[@subashtt4605]

you have explained clearly recording accumulated depreciation and depreciation expenses account . could you be able to explain about disposal account as well?

[@dspiritlight]

you teach great professor!

[@ze22zo]

Thank you sooooooooooo much . That was awesome explanation .

[@ramindersingh8623]

Thank u sir:)

[@TheSugarplum770]

Is Salvage value and life always given to us?

[@migarasdepan4423]

I have a question, is your video based on the COLGAAP?

[@francismushabati1296]

Da lecturer z outstandin.

[@jengal720]

Thank you so much for this video!!

[@zaheenable]

So , lets say each year when the financial statements are published , ia the asset shown as (cost - accumulated dep). If thats the case then should we still be accumulating depreciation? Shouldnt we just have the depreciation balance of that year than adding up with the previous years?

[@mattfisher64]

Yes. The accumulated depreciation keeps accumulating each year so if we have 5000 of depr exp each year then accum depr is 5000 in year 1 and then it will be 10,000 in year 2,

[@seansundae9553]

You are the best👍

[@trembita332]

Hello, Mr. Fisher. I have a question. How can I determine a useful life of the car if my company will buy a vehicle 10 years old?

[@littlewitchyfox]

Olena, think of it this way. How much was the car worth when it was 10 years old and you bought it? How much will it be worth when it is 15 years old? It doesn't matter how old it was when you bought it, but rather how much it was worth. By determining how much it was worth when you bought it and how much it depreciates, you're able to determine it's future value :) Hope this helps, even though the question is a bit old! :)

[@adriangrom9494]

thank you. just one question. where so we record the 9k, 15k, 21k etc ?

[@nerua4137]

in accumulated depreciation its a contra-asset account so it goes on the balance sheet under assets, every year as the car depreciates you just add more to that account by the amount the car depreciated

[@dbestfriend1980]

You have to check the book value in the year when it is sold. Lets say in the 3rd year, after six months. So, the book value =35000-(3000+6,000+3,000) =23,000. Now at what price it is sold? whether you sold it for a gain or loss.

[@twinturbogod]

You recognize a gain or loss on the sale of the asset when it is sold before it reaches maturity. The gain or loss depends on how much accum dep you have, and how much you sold the asset for.

[@A6L8HM]

You are awesome !!

[@a7mediab]

U the best I swear

[@waleedhk1]

@esagordita during fiscal period. could be quater/monthly, or a year

[@briannau4128]

How did you come up with those numbers when depreciating it? Where did the $3000 come from?

[@asd123465jkl]

It only depreciates 3000 in the beginning and the end because the car was bought in july, so it would depreciate by half of what it's supposed to in a year.

[@willypaul8681]

It's well explained, Thankyou

[@MagnumDrex]

The confusion that people have is that in several textbooks, it seems that they use DR Profit and Loss A/C and CR Accumulated Depreciation A/C directly. The problem with this is that it does not treat depreciation as an expense. Here, it is a liability which has been created directly from the P&L. This is wrong. As done in the video, using DR Depreciation Expense A/c and CR Accumulated Depreciation A/C, we demonstrate that we have depreciation as an expense and Accumulated depreciation as a liability which is shown in our balance sheet. Matt has shown the correct way to account for depreciation.

[@suhailahlatiff]

Thank you sir, worth to watch

[@popoysWorld26]

why does 3000 was on the firt yer?

[@TheNDex]

Car was bought in the middle of the year, which was July hence 3000 (6000/2 = 3000). If car was bought in March (1/4 yr), the total depreciated would be 1500. Hope this helps!

[@gatorflight74]

Good stuff!

[@shairagonzales09]

Very easy to understand thank you.

[@fernandosampaio8578]

i am a little lost, is not 35000/5 = 7000? how did he get the 6000?

[@msss126]

Fernando Sampaio The car is expected to last 5 years. but, after the 5 years it's expected to have a "salvage" value of 5000. (that basically means you can take it to the junk yard and get 5000.) you have to subtract the salvage value from the original price, so 35000-5000=30000. this means over the 5 years the car will go from 35000 down to 5000 (5000 being the salvage value). divide the 30000 decline in value by the 5 years. 30000/5=6000.

[@fernandosampaio8578]

That makes more sense, Thank you so much... Mark S

[@jeweljellyjolly]

Please just teach at our University of Maryland , u r amazing

[@abegundeyetunde1209]

please how is depreciation for the first year 3,000. please send because i got 6,000.

[@hoochiscrazy444]

Can someone explain why you debit the depreciated expense but credit the accumulated depreciation

[@davidmorrison8240]

You debit depreciation expense because it is a income statement expense account and it increases with a debit transaction. The accumulated depreciation is a contra asset (meaning it is taking away value from the asset). It increases with a credit transaction. This will give you a clearer picture of what an asset is actually worth. Hopefully that answers your question.

[@mauriciomosquera2831]

excellent but it 'd be better if upload double declining method

[@LilUncleRukus]

00:69 Song Name?

[@LilUncleRukus]

Darude - Sandstorm

[@littlewitchyfox]

dang i actually clicked it too

[@WaveFive]

Very helpful, thanks so much.

[@juliemangoxo]

I'm not understanding Why didn't he add Year 1 and Year 2 to get Depreciation Expense for Year 2, BUT he added Year 1, 2 and 3 to get Year 3?

[@gamesmasta]

Julie Hewitt Hey Julie -- The accumulated depreciation for year 1 is 3,000, then for year 2 it is 9,000, and year 3 it is 15,000. You do add the depreciation for the 3 years (3k + 6k + 6k) to get that.

[@Becky9517]

Hey I have a question, would this be an example of straight line depreciation? And also can I just say that you are amazing. I can't thank you enough for these videos. You make it so much more understandable! :D

[@mattfisher64]

This is an example of straight-line depreciation and thank you for your kind words!

[@yousufalmahri1710]

thanks for the explaining, I think you should say first year suppused to be 2,500 and the last year 3,500 because the first year has 5 months and the last year has 7 months. anyway thanks.

[@crystalchin6558]

+ actually what hes demonstrating is right from july 1st to dec 31 is 6 months. 6000 x 6/12= 3000. then from jan to the end of june is also 6 months same calculation applies.

[@loveLJ91]

I came here with the same question. Thanks for answering!

[@vadymav7279]

Lins J guys he always should change only first and last year or it depend what formula?????

[@great4ever845]

Shouldn’t it be 2500 instead of 3000

[@user-lw6wx6om4p]

thank you for the acronym!

[@ToMaHawk137]

If you don't remember DEAD you're as good as DEAD. :P

[@reymondrehman2245]

Dat marker cap drop tho!!!!

[@PhamLindah]

Why the hell do i need to watch my lectures when I can watch these videos instead?! my god...

[@diontaedaughtry974]

Great

[@migarasdepan4423]

OH Intereseting is the same principle whit the PCGA in Colombia

[@Saadaqib00]

thnx !!!! your great sir ;)

[@waqarmuhammad2059]

Thanks a million sir

[@minahajkhan7968]

well explained

[@ivonnelopez8203]

DEAD!!! Genius

[@diane6823]

I think I should have passed the mid-term exam if I came here earlier :)

[@josephatjoseph1755]

nice one thanks

[@mangalagowri9441]

Thank you !

[@stingray614]

I solemnly swear, I'll stop watching porn and start watching these accounting videos

[@_Max_4455]

did you

[@raulmejia2066]

Thank you.

[@lmvildan9580]

sir .. please upload more videos ^_^ thanks

[@sopheako39]

Heyyy, My TeaCheR TAuGhT Me ThAt!!!

[@bodour1416]

thank you so much

[@TheSugarplum770]

Sir, please do more videos.

[@soke2001]

Great video... but volume is waaaay low.

[@luckytwenty7043]

soke2001 put your volume up. He's already teaching, u adjust hehe

[@arif.daudzaiarif.daudzai9996]

Dear Respectful Teacher, Please remove the years from the calculations, as depreciation based on years may lead to inaccuracies. Instead, calculate depreciation based on months. This approach will help students understand that depreciation should be covered on a monthly basis rather than yearly. The whiteboard currently shows a period of 6 years, which should be adjusted. WBR,

[@mwaqasnawaz]

Depreciate in the year of purchase and no depreciation in the year of sale. i think this is the rule.

[@Mpbby1]

He teaches at my school I saw him wednesday lol