That's a wrap on the Adjusting Entries mini-series! You can find links to each video right here: ▪ Intro to Adjusting Entries → ua-cam.com/video/H0N7tvXuJlU/v-deo.html ▪ Prepaid Expenses → ua-cam.com/video/RE7wrflFOGA/v-deo.html ▪ Deferred Revenue → ua-cam.com/video/F1zNQ1wga7o/v-deo.html ▪ Accrued Expenses → ua-cam.com/video/9aZ6CCj-ies/v-deo.html ▪ Accrued Revenue → ua-cam.com/video/7ibN25VCvFg/v-deo.html ▪ WHOLE PLAYLIST → ua-cam.com/play/PL5zKSeS09l31dhHvwhS4sVjcckQSPGqtp.html
@@AccountingStuffwe don’t have an accrued account. So I booked it in the Other AR non ledger account. My accounting manager boss told me to book it in the AR sub ledger account 😂. Btw, where do you group your accrued revenue account in assets section? Under current asset section or else
Man I love you, you're a legend. Honestly don't know what I would have done at my exams without you. And I start enjoying accounting now ! Thank you so much
You are a literal life saver. I appreciate you taking the time to explain the concepts slowly and carefully, wouldn't have made it through ACC2430 with out you thank you!
I am taking Accounting courses online and I am so happy to have found your channel. Seeing it as you put it up in your videos are a huge help! Thank you.
I just want to say you helped me a lotttt, I already watched half of your videos. You were able to explain accounting stuffs easily. More videos to come James, thank you so much. More subscribers to come🥳
Amazing! I learned on the job and was taught how to enter the necessary information to create journal entries in our accounting software, but didn't know the theory or rationale behind it. Your videos give me insight into what the Financial Controller was doing on the their side. And more importantly, make the learning theory fun. I can only hope my future professors are as engaging as you are. Thank yo so much for making these videos!
You made accounting very interesting. You're a great teacher. Very clear, precise and entertaining. Your channel is the best accounting channel on UA-cam. Thanks, James! This series hasn't finished yet, right?
Thanks for all the hard work you put into explaining accounting. Super impressed with how effective and efficient your teaching style/ accounting logic is.. really helped out. This is a subject in finance that often gets underappreciated yet it's essential. Much respect
Just bought your cheat sheet bundle. Please continue showing examples in quickbooks online for the small business owners out here watching your videos. Thanks!
Bc you’re not going to remember it from one video or lecture.. YOU have to do the work. You should be studying for more hours than you are in lecture. You have to practice practice practice. No one can do it for you. I’m studying for the CPA rn.. graduated years ago, been working in the field.. I still need to brush up on fundamentals. You will do 1,000 accrual entries before you truly understand it for good
THANK YOU SO MUCH.. You have no idea how much these videos have helped me. I bought the cheat sheet and I am sure I will use it tons. BEST VIDEOS ON LINE
This is terrific James. I've been struggling with adjustments on the old multicolumn worksheets. So showing us your T accounts has been so helpful to my learning. GREAT VIDEO!
I'm currently a 12th grade student learning accounting. Your videos helped me a lot in understanding the complexity of the subject. I've also got pretty high grades so thank you!!
You are Awesome!!!! I always had a hard time understanding accounting...till now. You are clear and concise and NEVER boring!!!! Not to mention ur VERY EASY ON THE EYES! Thank you 😊 so much.
Man, this is amazing! I need to watch over this again tomorrow. Thanks for recommending that video. I understand everything, although, it needs to sink in. I can't show enough appreciation. Thank man! (I'll check out the PFD too)
Just got through this whole mini series, wow, very nice! I can’t help but want to find some middle ground between the cash basis and the accrual basis, but not that modified cash/accrual basis that government entities use. Here is an idea that I cannot get out of my head: IBR basis. The IBR basis (Invoice-Bill-Receipt basis) recognizes revenue when an invoice or sales receipt is generated and recognizes expenses when a bill or purchase receipt is generated. This would eliminate the need for these adjusting entries, and would place the focus back on the accounting triggers themselves. I argue that the focus should be placed on the accounting triggers, especially when focusing on the accruals side of this mini series, and the reason is that for those who have seller/buyer relationships on account, you wouldn’t and shouldn’t expect cash to change hands until after an invoice/bill is created. I’m interested to hear the communities response!
very nice video. One thing that should be mentioned is that Revenue is generally booked when there is certainty and agreement from the client and the service has been provided. You may have done work, but if there is no acceptance, in any form, such as a contract or statement of work, revenue would be compromised and you would not be able to record it.
Hi,,, you are providing a great material especially for someone like me know nothing about accounting but with your videos i think i know much more, I have bought the adjusting entries cheat sheet, it is great, but I request you please to make more detailed cheat sheets for all 4 types of adjusting entries, for example for the Pre-paid expenses , how it is recorded, and adjusted and readjusted and what accounts are affected in both income statement and balance sheet .... this would be great for us to understand it more and memories it :) Thank you
My guy, you deserve all the subscribers! Absolutely amazing videos bro, my prof couldn’t even teach like this. Btw I saw that you used Canadian currency in another video haha, best wishes from Ontario!
Not sure why someone would do a GL entry instead of issuing an invoice if the work completed in a period, but I can see if the work flowed over multiple periods particularly year end where a estimate of earned income should be recorded. Then there is the issue of sales taxes. Record them as revenue is earned or when the invoice is issued? I must admit that I have gotten lazy in monthly adjustments, but by watching your videos it offers a refresher of what we should be doing if rules are to be followed.
Hey Rick, sometimes you aren't allowed to bill until you hit a certain milestone. Or the invoice doesn't get approved on time. It happens surprisingly often actually. Sales tax is recorded once the invoice is issued.
Hi, brilliant stuff, very helpful while I study financial accounting. Any chance for similar videos on IRRECOVERABLE debts and irrecoverable debts paid as well as ALLOWANCES for Receivables?
Hello James , your videos have helped me greatly in my studies. Please can you do a video on accrual /prepayment accounting for when you have a bill that’s for 3 months. Say you’ve received a bill for jan, feb, and March , you are billed in March for the three months. How do you account for each month in the books, and adjusting for them. The question papers I’ve used to practice on and tested on, do not specify exactly when the company pays the bill. It gives you when they year ends but that’s it. Say it’s feb, do you account for January’s “ earned” part of the bill in the books or do you account for both jan and febs “earned” portion of the bill? In the final accounts. I’ve been puzzled by these type of questions whether it’s accrued or prepayment adjustments in the final accounts. Please can you help.
Thank you master for the series. Very helpful.. I just have a small query :- As you mentioned in earlier video that deferred revenue/prepaid revenue/unearned income are one and same thing.. So are there any similar terms for expenses?? Is deferred expense same as Prepaid expenses ?
Possible dumb question: Would AR also include the amounts of open invoices for future goods/services? Example: a customer orders a $500 plane ticket that departs in September, and I send a net 30 invoice in July. Would you debit AR and credit unearned revenue? It just seems odd to describe an invoice for future services as an “asset”. Am I missing something?
So do I understand correctly that if one bills/sends an invoice at the same moment of the delivery of the goods or services it will be a debit of the accounts receivable and there would be no accrued revenue? Or do they exist next to eachother?
Hi James i am abit confused with entry of sales invoice, when the sales invoices is posted then revenue will be credited again in july and it will be double entry unless we debit revenue and credit the accured revenue to nullify the effect.Please correct me if im wrong.
Is there a way to memorize the difference between Accrued Revenue and Unearned Revenue? I've watched all four videos adjusting entries just a while ago. I just can't differentiate between the two on first thought. The only way I have come up is; Accrued Revenue is an Asset and Unearned Revenue is a Liability.
Accrued Revenue is Revenue that has been earned but not Invoiced yet, whereas Unearned Revenue occurs when payments are received before the work is done
That's a wrap on the Adjusting Entries mini-series! You can find links to each video right here:
▪ Intro to Adjusting Entries → ua-cam.com/video/H0N7tvXuJlU/v-deo.html
▪ Prepaid Expenses → ua-cam.com/video/RE7wrflFOGA/v-deo.html
▪ Deferred Revenue → ua-cam.com/video/F1zNQ1wga7o/v-deo.html
▪ Accrued Expenses → ua-cam.com/video/9aZ6CCj-ies/v-deo.html
▪ Accrued Revenue → ua-cam.com/video/7ibN25VCvFg/v-deo.html
▪ WHOLE PLAYLIST → ua-cam.com/play/PL5zKSeS09l31dhHvwhS4sVjcckQSPGqtp.html
Error, "Accrued Revenue..."earnt for the client we haven't built for client,". Should be "billed"?
Yes it should be billed@@Logos3432-t5n
I must say, you are good! You explained in less than 10 minutes what took my lecturer 2 hours.
Thanks Bella!
Honestly
@@AccountingStuffwe don’t have an accrued account. So I booked it in the Other AR non ledger account. My accounting manager boss told me to book it in the AR sub ledger account 😂. Btw, where do you group your accrued revenue account in assets section? Under current asset section or else
You gotta respect the filming and editing put into this. Respect my guy
Cheers Jack :)
HANDS DOWN!!
THIS IS THE BEST UA-cam CHANNEL!
PRODUCTION LEVEL......INTERACTION LEVEL....HELPFUL!!
WHAT MORE I CAN ASK FOR!
LOVE FROM BANGLADESH!
Haha, thanks mate! Best wishes from Canada
@@AccountingStuff so you are from CANADA? I thought you are an AMERICAN.
Seriously!!!
@@niloykarmaker1024 I'm from the UK but I live in Canada
@@AccountingStuff hmm.. now it goes with your akcent.
OMG!
Where have you been all my life 💃💃
Thanks
Man I love you, you're a legend. Honestly don't know what I would have done at my exams without you. And I start enjoying accounting now ! Thank you so much
Cheers Cyril! Hope the exams went well!!
You are a literal life saver. I appreciate you taking the time to explain the concepts slowly and carefully, wouldn't have made it through ACC2430 with out you thank you!
I'm making accrual adjusting entries for an audit, and the accrual expense/revenue videos are priceless in helping me take the right steps. Thank you!
I am taking Accounting courses online and I am so happy to have found your channel. Seeing it as you put it up in your videos are a huge help! Thank you.
I just want to say you helped me a lotttt, I already watched half of your videos. You were able to explain accounting stuffs easily. More videos to come James, thank you so much. More subscribers to come🥳
Thanks Kim, more videos are coming soon :)
Amazing! I learned on the job and was taught how to enter the necessary information to create journal entries in our accounting software, but didn't know the theory or rationale behind it. Your videos give me insight into what the Financial Controller was doing on the their side. And more importantly, make the learning theory fun. I can only hope my future professors are as engaging as you are.
Thank yo so much for making these videos!
Great to hear it's clicking for you!
Accounting aside, these videos are insane. The amount of effort being put into them is remarkable. Congrats homie
Cheers Pablo!
You made accounting very interesting. You're a great teacher. Very clear, precise and entertaining. Your channel is the best accounting channel on UA-cam. Thanks, James! This series hasn't finished yet, right?
Thanks Soe! Yes, the Adjusting Entries Mini-Series is complete. But plenty more Accounting vids coming soon
Thanks for all the hard work you put into explaining accounting. Super impressed with how effective and efficient your teaching style/ accounting logic is.. really helped out. This is a subject in finance that often gets underappreciated yet it's essential. Much respect
Thanks for your kind words!!
Just bought your cheat sheet bundle. Please continue showing examples in quickbooks online for the small business owners out here watching your videos. Thanks!
Thanks for supporting the channel!! I appreciate it. Cheers for your suggestion
I LOVE your examples, really makes the things way easier to remember!
That's great to hear, thank you!
You're a fantastic teacher. I wouldn't be making it through my course without your videos. Thank you!
yo i know you might not see this but you made me sooooooo happy helped me alot for my exam tomorrow shared it with my friends thay absoloutly loved it
Absolute legend this man. Explaining things in simply in entertaining fashion. Will definitely buy the cheat sheet. My favorite YT channel!
Thanks and cheers for your support!
Each video is very useful to improve my English and in particular Accountung English! Many thanks, greetings from Italy
Glad to hear it Flavio! All the best from Canada
I have to say your channel is the best one I found during this quarantine !! Thank you very much for helping !!
Thanks Sally! I'm happy to help. Hope you're keeping safe!
This is as far as my class goes thanks for everything!
No worries, you're very welcome! All the best
why do accounting teachers not explain things like this, so simple, so understandable, so clear
Glad you found it useful!
Bc you’re not going to remember it from one video or lecture.. YOU have to do the work. You should be studying for more hours than you are in lecture. You have to practice practice practice. No one can do it for you.
I’m studying for the CPA rn.. graduated years ago, been working in the field.. I still need to brush up on fundamentals. You will do 1,000 accrual entries before you truly understand it for good
THANK YOU SO MUCH.. You have no idea how much these videos have helped me. I bought the cheat sheet and I am sure I will use it tons. BEST VIDEOS ON LINE
No worries, it's great to know that the videos have helped you out. I hope you find the cheat sheet helpful!
Wow excellent work in the explanation. It’s so much easy to get this when you said “hold it temporarily in the BS”
Great to hear it's making sense :)
This is terrific James. I've been struggling with adjustments on the old multicolumn worksheets. So showing us your T accounts has been so helpful to my learning. GREAT VIDEO!
Thank you so much!!! Your vids got me an A in my midterms. I have my finals tomorrow and I’m super nervous but your videos are helping a lot!!!!!!
Good luck!!!
Wow! You are such an outstanding teacher! Thank you x1000!
Happy to help!
I'm currently a 12th grade student learning accounting. Your videos helped me a lot in understanding the complexity of the subject. I've also got pretty high grades so thank you!!
Congrats on your high grades! Great to hear it's going well for you :)
Thank you.
This video helps me a lot.
before I watch it all was mixed up in my head but know it’s all clear and my work is becoming very easy.
Great to hear it's making sense :)
I have learned more watching these videos than my lectures.. thank you!!
No worries Manny, you're most welcome :)
Thank you so much. Im struggling a lot with this adjustment through book. Easy to understand now
Great to hear it's making sense :)
Thanks!
Wow! Legend, thanks :)
You are Awesome!!!! I always had a hard time understanding accounting...till now. You are clear and concise and NEVER boring!!!! Not to mention ur VERY EASY ON THE EYES! Thank you 😊 so much.
No worries Lydia, you are very welcome!
Very informative series. I bought the cheat sheet too. Good work ma'man.
Cheers and thanks!
You're welcome! @@AccountingStuff
purchased it... love that you are monetizing!
Cheers Hector!
Love your videos! This channel definitely needs more attention! It would be awesome if you made a video on the closing process!
Thanks for your suggestion!
fantastic video. You did a great job making this really simple to understand
Thanks, glad you enjoyed it :)
This series has been extremely helpful - thank you so much
You're very welcome!
Please make a video on UNEARNED REVENUE VS OUTSTANDING REVENUE!
LOVE FROM BANGLADESH IN ADVANCE
Hey Abir, cheers for the suggestion!!
Bought! Will come very handy next year for Financial Reporting module 👍🏻
Legend!
I just bought adjusting entries cheat sheet.. Really useful. Thanks bro!! 💯💯 Happy to support ur work!
Thanks for your support! I really appreciate it
Thanks James for clarifying the issue which was once really confusing for me.
No problem, I'm happy to help :)
Just love your vibe and energy and make Accounting seem a little easier
Thanks Charnisse, all the best with your studies!
Man, this is amazing! I need to watch over this again tomorrow. Thanks for recommending that video. I understand everything, although, it needs to sink in. I can't show enough appreciation. Thank man! (I'll check out the PFD too)
No problem, sometimes it helps to look at a few scenarios to fully appreciate a concept.
Explained very nicely and simpler way
Thanks!
Thanks alot from India..I hope i can use the understanding in cpa exams too
The basic concepts that I cover in my videos are applicable everywhere
Bro you are the Great Clear all the query
Thanks buddy :)
Favorite Accounting Channel :)
Thanks Leovelyn!
Explained perfectly again! Thank you :)
No problem, hope it made sense :)
i enjoyed this one, the cloud in my mind started to clear on this episode. Thank you!
No problem :)
Just got through this whole mini series, wow, very nice! I can’t help but want to find some middle ground between the cash basis and the accrual basis, but not that modified cash/accrual basis that government entities use. Here is an idea that I cannot get out of my head: IBR basis. The IBR basis (Invoice-Bill-Receipt basis) recognizes revenue when an invoice or sales receipt is generated and recognizes expenses when a bill or purchase receipt is generated. This would eliminate the need for these adjusting entries, and would place the focus back on the accounting triggers themselves. I argue that the focus should be placed on the accounting triggers, especially when focusing on the accruals side of this mini series, and the reason is that for those who have seller/buyer relationships on account, you wouldn’t and shouldn’t expect cash to change hands until after an invoice/bill is created. I’m interested to hear the communities response!
Great Stuff! You are one talented guy.
Thanks for your kind words!
Just purchased all your sheets 🎉Thank You!!
Thanks for your support!
What a relief! Thank you for helping.
You're very welcome :)
very nice video. One thing that should be mentioned is that Revenue is generally booked when there is certainty and agreement from the client and the service has been provided. You may have done work, but if there is no acceptance, in any form, such as a contract or statement of work, revenue would be compromised and you would not be able to record it.
True, I might have to make a another video on Revenue Recognition
@@AccountingStuffWhy did you record revenue in June when there wasn't an invoice yet?
Do cover irrecoverable debts! Your videos are really helpful for my accounting exams!!
Thanks for the suggestion, I'll keep it in mind!
Hi,,, you are providing a great material especially for someone like me know nothing about accounting but with your videos i think i know much more, I have bought the adjusting entries cheat sheet, it is great, but I request you please to make more detailed cheat sheets for all 4 types of adjusting entries, for example for the Pre-paid expenses , how it is recorded, and adjusted and readjusted and what accounts are affected in both income statement and balance sheet .... this would be great for us to understand it more and memories it :)
Thank you
Hey Usama, thanks for your suggestion! I'll look into that
bought it! its been very helpful. Thank you for sharing such knowledge.
Awesome, thanks Carolyn! All the best
Excellent as always!
Thanks!
Love this channel. Waiting for a video on 'Inventory'.
Cheers Sameed, and thanks for your suggestion!
My guy, you deserve all the subscribers! Absolutely amazing videos bro, my prof couldn’t even teach like this.
Btw I saw that you used Canadian currency in another video haha, best wishes from Ontario!
Cheers mate! Haha yes, I'm in Vancouver so it's all I have available. All the best!
Thank you, this was extremely helpful and I appreciate you putting this out
Thank you for helping me obtain my degree
Congrats on getting your degree! That's all you :)
You’re a life saver!
Thanks! Glad I could help
you should do financial statement analysis next... vertical & horizontal analysis, etc.
Hey Giancarlo, cheers for the suggestions!!
awesome explanation! Thanks!!!
No problem, hope it made sense :)
Explained it better than Becker for FAR!! Thanks!
Thanks Vinit!!
You are amazing man, this videos are so much helpful. Ur doing a great job.
Thanks Dorel!
Just bought totally worth it I actually got an Ace in my exam from watching your videos
Congrats Carlos!! So happy that you aced your exam!
Ur explanation to good ❤
Thanks, I'm glad you found it useful :)
this is such a blessing. Thank you so much!
The example is genial. Good job.
Thanks buddy
Keep going mate, i like ur thumbnails and contents
Thanks Jeremy, I don't plan on stopping anytime soon
Not sure why someone would do a GL entry instead of issuing an invoice if the work completed in a period, but I can see if the work flowed over multiple periods particularly year end where a estimate of earned income should be recorded.
Then there is the issue of sales taxes. Record them as revenue is earned or when the invoice is issued?
I must admit that I have gotten lazy in monthly adjustments, but by watching your videos it offers a refresher of what we should be doing if rules are to be followed.
Hey Rick, sometimes you aren't allowed to bill until you hit a certain milestone. Or the invoice doesn't get approved on time. It happens surprisingly often actually. Sales tax is recorded once the invoice is issued.
Hi, brilliant stuff, very helpful while I study financial accounting. Any chance for similar videos on IRRECOVERABLE debts and irrecoverable debts paid as well as ALLOWANCES for Receivables?
Hey Anna, thanks for your suggestions!
Fantastic playlist, thank you Sir
Thanks!
Good Explanation but adjustment entries always difficult in modern accounting softwares.
Very informative, helpful videos . Thank you for making it easier to me :)
No worries Ankita! It's great to hear that accounting is becoming easier for you.
Hello James , your videos have helped me greatly in my studies. Please can you do a video on accrual /prepayment accounting for when you have a bill that’s for 3 months. Say you’ve received a bill for jan, feb, and March , you are billed in March for the three months. How do you account for each month in the books, and adjusting for them. The question papers I’ve used to practice on and tested on, do not specify exactly when the company pays the bill. It gives you when they year ends but that’s it. Say it’s feb, do you account for January’s “ earned” part of the bill in the books or do you account for both jan and febs “earned” portion of the bill? In the final accounts. I’ve been puzzled by these type of questions whether it’s accrued or prepayment adjustments in the final accounts. Please can you help.
Thanks for your request!
Thank you master for the series. Very helpful.. I just have a small query :- As you mentioned in earlier video that deferred revenue/prepaid revenue/unearned income are one and same thing.. So are there any similar terms for expenses?? Is deferred expense same as Prepaid expenses ?
Not so much with expenses... We have Accrued Expenses and Prepaid Expenses
bought the cheat sheet!
Thanks for your support!
Thanks a Lot - Perfect Videos
You're very welcome :)
Solid 10/10 thank you so much
Cheers Harold :)
Thanks for another great video! :)
You're most welcome :)
Can you please make a video about account receivables that are not received and the bad debt thing?
Thanks for your request!
Tq, Financial Accounting shifu...how about starting a series on Management Accounting, as well?...
Thanks for your request!
How is it different from sales in excess of invoicing/billing for point-in-time revenue recognition?
Well explained. Thanks
You are the best
The best !!!!!!!!
Possible dumb question: Would AR also include the amounts of open invoices for future goods/services? Example: a customer orders a $500 plane ticket that departs in September, and I send a net 30 invoice in July. Would you debit AR and credit unearned revenue?
It just seems odd to describe an invoice for future services as an “asset”. Am I missing something?
Hi. I have a question.Then at the end of this Example after received the cash i need to post 3 journal entries or just 2 ?
So do I understand correctly that if one bills/sends an invoice at the same moment of the delivery of the goods or services it will be a debit of the accounts receivable and there would be no accrued revenue? Or do they exist next to eachother?
Hi James i am abit confused with entry of sales invoice, when the sales invoices is posted then revenue will be credited again in july and it will be double entry unless we debit revenue and credit the accured revenue to nullify the effect.Please correct me if im wrong.
can you discuss closing journal entries?
Hey Morgan, thanks for your suggestion!
Whats the difference between accrued revenue and accounts receivable ??
brilliant
Is there a way to memorize the difference between Accrued Revenue and Unearned Revenue? I've watched all four videos adjusting entries just a while ago. I just can't differentiate between the two on first thought. The only way I have come up is; Accrued Revenue is an Asset and Unearned Revenue is a Liability.
Accrued Revenue is Revenue that has been earned but not Invoiced yet, whereas Unearned Revenue occurs when payments are received before the work is done
Hi James, can you do a video about adjusting entries for bad debts and doubtful debts allowance?
Cheers for your suggestion Tom!