FINALLY! Every other explanation I read and viewed left out the original (in your example salaries) cash entry (in your example, on the 24th). It helps me to understand the adjusting entry better with that piece of the puzzle. You helped me see the WHY of the adjusting entry more clearly. Thanks!
Thank you so much for this!!!! I've been needing help for things to 'ding' for me and well you made it so with accrued expense entry. Your explanations, pace and presentation are properly affective, I will be subscribing. God bless you Notepirate! 👍🌹🤩
Thanks sooo much for making these tutorials and for explaining them in a simple way ! Really you've helped me a lot and i really needed something like this ! Good luck with your life !!
It's $500 because we're recognizing 1 week's worth of salary instead of the usual two (or biweekly pay). Remember that the salary is $1000 BIWEEKLY. Basically the September 7th paycheck is split between the two months but we still have to recognize the salary expense for the last week of August in order to include them in August's financial statements. $1000/2weeks is $500/1week. Hope that makes sense lol.
it's sad when yoy go online and learn accounting better online than in class classrooms are outdated schooling methods I believe are useless unless for hands on activitys but most classes are not
Suppose in February you hire a contract worker to help you . You agree in advance to pay them $400 for a weekend’s work. However, they don’t invoice you until early March. what would be its journal entry and adjusting entry?
Always think of when cash is paid/received relative to the event. If cash is paid before an event occurs then you will record a prepayment. If cash is paid after an event occurs then you will record a deferral. In this situation it seems that you agreed to pay cash but haven't actually paid it yet. You would Dr. Wage expense/Professional Fees Due and Cr. Wage payable/Professional Fees Due Payable. When you are invoiced and you pay it Dr. Wages Payable/Professional Fees Due Payable and Cr. Cash.
alright I get how the adjusting entry works now but what happens when payday arrives do we just do Salary expense 500 (debit) to total 1000 salary payable 500 (debit) to bring back to 0 Cash 1000(credit)
How would you balance out the salaries payable with the left side of the balance sheet though? 500 would go into trade and other payables under liabilities but I'm unsure as to where to balance this out on the left side of the accounting equation...Thanks.
Hi, could you help me.I'm useless with accounting.I understand the concept but this question confuses me.as st 30 June 2012, trial balance shows debit of $2760 under rent.I guess I need to do an accrual? Question states rent included $900 paid for the 3 months to 31 July 2012.I don't understand this.
+math bone It is $500 because he is using weekly. They are paid $1,000 bi-weekly (every two weeks) which is $500 a week. More so, he is doing the balance sheet for the month, cutting the week. The week is cut off so its only $500 for that paycheck and only 500 for that month.
because they only worked for one week and they get payed bi-weekly, so it would be half of 1,000 since the accounting period ends before they get payed. Sorry if I'm 3 years late lol
FINALLY! Every other explanation I read and viewed left out the original (in your example salaries) cash entry (in your example, on the 24th). It helps me to understand the adjusting entry better with that piece of the puzzle. You helped me see the WHY of the adjusting entry more clearly. Thanks!
This video helps me a lot! I was so confused when my Professor was lecturing about this. Thank you!
Thank you so much for this!!!! I've been needing help for things to 'ding' for me and well you made it so with accrued expense entry. Your explanations, pace and presentation are properly affective, I will be subscribing. God bless you Notepirate! 👍🌹🤩
Thanks sooo much for making these tutorials and for explaining them in a simple way ! Really you've helped me a lot and i really needed something like this ! Good luck with your life !!
It's $500 because we're recognizing 1 week's worth of salary instead of the usual two (or biweekly pay). Remember that the salary is $1000 BIWEEKLY. Basically the September 7th paycheck is split between the two months but we still have to recognize the salary expense for the last week of August in order to include them in August's financial statements. $1000/2weeks is $500/1week. Hope that makes sense lol.
I find this tutorial very usefull to me. thankyou so much! accounting has never been this simple :)
Sound explanation great video.
thank you, i understand adjusting entries a lot better now
Thanks a lot! This video help me so much!
It helped me so much. Thanks for the video
it's sad when yoy go online and learn accounting better online than in class classrooms are outdated schooling methods I believe are useless unless for hands on activitys but most classes are not
yep... pisses me off
exactly
Suppose in February you hire a contract worker to help you . You agree in advance to pay them $400 for a weekend’s work. However, they don’t invoice you until early March.
what would be its journal entry and adjusting entry?
Always think of when cash is paid/received relative to the event. If cash is paid before an event occurs then you will record a prepayment. If cash is paid after an event occurs then you will record a deferral. In this situation it seems that you agreed to pay cash but haven't actually paid it yet.
You would Dr. Wage expense/Professional Fees Due and Cr. Wage payable/Professional Fees Due Payable. When you are invoiced and you pay it Dr. Wages Payable/Professional Fees Due Payable and Cr. Cash.
are we not including the remaining $500 salary because the cycle ends next month?
We shall include the expense accrued in the current month?
This was so good ! Thank you so much I understand it now :)
Thank you for all the amazing videos... can u please upload "how to do a consolidated SPLOCI".... desperately in need of that...
alright I get how the adjusting entry works now but what happens when payday arrives do we just do
Salary expense 500 (debit) to total 1000
salary payable 500 (debit) to bring back to 0
Cash 1000(credit)
How would you balance out the salaries payable with the left side of the balance sheet though? 500 would go into trade and other payables under liabilities but I'm unsure as to where to balance this out on the left side of the accounting equation...Thanks.
Hi, could you help me.I'm useless with accounting.I understand the concept but this question confuses me.as st 30 June 2012, trial balance shows debit of $2760 under rent.I guess I need to do an accrual? Question states rent included $900 paid for the 3 months to 31 July 2012.I don't understand this.
***** Thank you for your reply.can I post on your Facebook.
Thank you!!
Thank you so much!
sorry sir the problem is that I don't understand accurals and prepayments at all, I have been practicing for a year, but still I don't get it
If you think adjusting journal entries are fun, you clearly have never seen the Bee Movie.
good stuff
nice video
sir what is a deferral?
i don't understand why you put 500$ explain ?
+math bone It is $500 because he is using weekly. They are paid $1,000 bi-weekly (every two weeks) which is $500 a week. More so, he is doing the balance sheet for the month, cutting the week. The week is cut off so its only $500 for that paycheck and only 500 for that month.
Thank you , but I don't understand why is it 500 and not 1000 , anyway thanks
because they only worked for one week and they get payed bi-weekly, so it would be half of 1,000 since the accounting period ends before they get payed. Sorry if I'm 3 years late lol
@@Chris-fe1kx its a good thing you still replied anyways cause i had the same question lol
i think you mean bi monthly not bi weekly
k thx xddddd
terrible. Explanation was all over the place
I think he's just angry he had to study for accounting...
vid was great this guy just wasn't paying attention or has not reached this level of accounting yet
nope, didn't understand anything
I'm doing ACCA, but sir the way u lecture is way different from other tutor's
you make accounting less boring. thanks