I teach accounting at a university. This video is great. I post it for my students in case they want to see more examples or just get more practice.
@Edspira3 жыл бұрын
Thank you for your support. I hope you and your students have an excellent fall semester!
@hasnainahmed29156 жыл бұрын
believe me, people like you are blessing.
@shubs4sats4 жыл бұрын
In the process of viewing all 146 videos to prepare for my interview. Thankyou for beautifully explaining every single concept.
@bhagatsingh50198 жыл бұрын
Thank you for your all beautifully explained videos.
@aliciahe89583 жыл бұрын
I'm literally watching this in 2021!!! thank you super much !!!!
@vincentortega42846 ай бұрын
Excellent Professor. Love your teaching videos. God bless you, Sir
@olivierh.84165 жыл бұрын
A man that is opening many doors for the others. Thx a lot
@fayezfathah65294 жыл бұрын
Nice teaching yo! I liked the way you've man! I wanted to know bout' this bcuz' my teacher took 3-4 months to teach this! But finally I found the right video! Once again thanks mahn!!!
@jaimeherrera31655 жыл бұрын
At 8:30 I pounded my head on the desk when you wrote the journal enter for the sales because you did not put the debit, Cash and COGS, next to each other that a bad habit.
@yoij-ov3sd3 жыл бұрын
I thought that part was confusing. So how should it have looked? Cash 4,000 CoGS 2,000 Sales 4,000 Inventory 2,000 ?
@dirknoel26114 жыл бұрын
Something that helps me is to remember DADE CLER (Debit: Asset-Draw: Expense/ Credit:Liability-Equity-Revenue) _ Assets-Liabitlities-Equity= Balance Sheet and Revenues-Expense = Income Statement
@katephan82667 жыл бұрын
Thats 👍 great, I learn from this video so much,thanks
@Edspira7 жыл бұрын
No problem! Take care my friend
@zamf5 жыл бұрын
Great video. I was wondering how you can reflect the "wages expense" in the "cost of goods sold" account. Or are they 2 separate things that should not be combined?
@MyFinancialFocus2 жыл бұрын
Fundamentals!
@saimumn92527 жыл бұрын
understandable explanation
@johnchristiandessalet47097 жыл бұрын
i love you.
@Edspira7 жыл бұрын
Love you too!
@punkkimiko6 жыл бұрын
LOL
@Arthatch2 жыл бұрын
Very informative. Thank you
@showindo5 жыл бұрын
for selling food for $4000, can you do debit cash $4000 and credit inventory $2000 and revenue $2000?
@kanyshai58806 жыл бұрын
Thank you soo much. You're a life saver!!!!
@betulchamplin36423 жыл бұрын
Very helpful, thank you so much!
@pingpong9656 Жыл бұрын
Once a business is up and running, can the owner just take out the original equity investment without tax consequences?
@Edspira Жыл бұрын
In the United States it depends what type of business entity we are talking about. If the business is a C corporation, then the company's profits are taxed and the owner is taxed when they receive a dividend (but if the business doesn't have profits the distribution is a return of capital, reduces the shareholder's tax basis, and isn't taxed unless their tax basis is zero). If the business is a flow-through entity (S corp, partnership, LLC) then the owner is taxed on their share of the company's profits regardless of whether they receive a distribution from the company, and for that reason, distributions to the owner are generally not taxable (but there are exceptions).
@insertfunnyusernamehere80944 жыл бұрын
Man why is it that every time I click on a video that I searched for using the titles “what is a business journal and general ledger “ the video is always second or third in a playlist that I just can’t seem to find?
@prudentwomen5 жыл бұрын
Love this!
@murphygreen84845 жыл бұрын
What happens if not all of the food is sold, but has not spoiled for whatever reason? How do you know how much of that $2000 to offset? It's easy when everything is sold, but I don't see how it would be easily tracked if it wasn't?
@bharatchaurasiya86166 жыл бұрын
your best sir
@Edspira6 жыл бұрын
Thanks Bharat!
@andrive27126 жыл бұрын
when we pay 500$ for employee's wages payable, what happened to wages expenses?
@Edspira6 жыл бұрын
When a worker initially works, you increase Wages Expense and increase Wages Payable. Later, when you actually pay the employee the $500, you decrease Cash and decrease Wages Payable (Wages Expense is unaffected).
@haddagart6 жыл бұрын
Edspira Thank you for the clarification because I was really confused on that part. And went directly to the comments hoping to find the answers and here it is. You are awesome.
@UNStar888 жыл бұрын
Good video
@yasirmalik55838 жыл бұрын
Thnx boss
@samaherahmed35684 жыл бұрын
why wouldnt the equipment be a credit of equity? is the cash (credit) from the 50000 or is it an extra 6000
@boostyy3015 жыл бұрын
how does it work if you buy a truck for 15,000 but pay 5,000 upfront and you make payments on the rest?
@prudentwomen5 жыл бұрын
You still debit the truck/asset account for $15,000. But the credit side would be broken down into two parts. You would credit $5,000 cash and also credit $10,000 to A/P (the amount you financed).
@boostyy3015 жыл бұрын
@@prudentwomen thank you!! im doing test corrections and this was same scenario different numbers
@jw114327 жыл бұрын
I only take issue with calling the food and t-shirts (previous video) inventory. The food must be prepared before it can be sold, just as the t-shirts must be altered to display whatever graphic/logo before it is sold. Before these alterations, I would be inclined to call them supplies. Only after the final product is created do you have inventory to sell.
@Potjandorie3 жыл бұрын
so COGS is also considered in retained earnings? For me it would be easier if you explained it in balance sheet terms, because I am not quite familiar with what goes where.
@Potjandorie3 жыл бұрын
so when COGS goes up by 2000 (debit) it means that retained revenue goes down by 2000. Whereas the sales increases the retained revenue by 4000.
@esraaramadan9804 жыл бұрын
thank you
@pi45382 жыл бұрын
Hello, Professor for $ 2000 food can we it expense and put it in Debit Best Pi
@mustafalion64176 жыл бұрын
Thank you so much
@Edspira6 жыл бұрын
you're welcome!
@alumi98184 жыл бұрын
So if I invest 50k in a biz, and thus increase my equity my 50k, is that a credit?
@sherryflavour37915 жыл бұрын
I'm really not getting the intuition behind the fact that an increase is in cash is a debit and decrease is credit! On my bank statement credit cash increases, and debit cash decreases.
@rizamercado12035 жыл бұрын
im literally crying i still cant understand a thing and my exam is tomorrow!! *ps. this is not my yt acc.
@masuphamolapo95604 жыл бұрын
Sales = revenue! (Correct?)
@Edspira4 жыл бұрын
Yes, sales are a type of revenue account (Sales Revenue)
@kjsavinelli5 жыл бұрын
He's using the terms "credit" and "debit" in a nonessential way. To "debit" is to remove something from an account. "Debit my savings account 500 dollars." To "credit" is to add something to an account. "credit me 20 bucks." These are the dictionary definitions of the terms. He's tying the terms to either the left or right side of this equation, and your expected to remember which side of the equation "credit" or "debit" are linked to, regardless of whether you are adding or subtracting cash, inventory, equipment, etc. This is probably why people are getting confused in this video, if you are getting confused at all. And if you aren't getting confused, it's because you see what he's talking about despite his nonessential use of the terms "credit" and "debit." My advice is to ignore him when he's using "credit" and "debit," and just focus on where the money is going and why, and why you need to balance each side of the equation in the journal.
@kjsavinelli5 жыл бұрын
Also, he's just using colors randomly. The colors don't mean anything. This is a bad presentation habit. Otherwise I like the videos, but this is a bad practice when you are teaching.
@jameshamilton11354 жыл бұрын
@@kjsavinelli I'm trying to learn this stuff and understand most of what he went through, up until the end. What he describes as Cost of Goods Sold (COGS), I would have through would have not been an Asset - Debit, but instead, been categorized as an Asset - Credit for Inventory Decrease, and would be balanced by a decrease in Equity on the right side (would that then be a Debit on the right side?), because some of the inventory was decreased. I've studies advanced level calculus having little to no problems, and this crap is kicking my butt...smh.
@devyncorvington71067 жыл бұрын
Marry me
@ne1uno Жыл бұрын
theres another mistake edd... inv2000 credit debit cog 2000 is right answer not reverse..
@HimanshJainYTube7 жыл бұрын
Thank you sir :)
@jamsteroffthewheel4731 Жыл бұрын
Completely Lost me with this one, I was following along until now