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I've read a lot of boring stuff so that you don't have to! Today we will summarize some of the useful information in the FASB Concepts Statements and other literature.  This information will be useful as you move along to more advanced levels of accounting.

Example: You own a sole proprietorship. For this period, you had revenue of $100,000, wage expense of $40,000, and computer expense of $30,000 (net income of $30,000). You also contributed $10,000 to the business this period. Step 1 – Transfer Revenue and Expense items to Income Summary                                                              Debit           Credit Revenue                                        $100,000             Income Summary...

 Today we will go over the adjusting process. This is where we make our adjusting journal entries to get from our unadjusted trial balance to our adjusted trial balance, which contains the figures we use on the financial statements and tax returns. We will briefly discuss prepaid expenses, unearned revenues, accrued revenues, accrued expenses, and depreciation/amortization. 

Today we will discuss the accounting cycle. This is the process taken each period to record transactions, prepare the financial statements, and to reset the temporary accounts to zero for the next period. Keep in mind that the steps you may see in your accounting textbook or elsewhere may be slightly different - I have simplified some of the steps: Step 1 – Record transactions as journal entries in the general ledger; Step 2 – Prepare an unadjusted trial balance as of the end of the...

Today we will go over the “fake cash” method to easily solve the indirect cash method.  You must (1) identify the type of accounts being affected on the statement of cash flows, and then (2) create a journal entry that summarizes the change in each particular account, and the balancing journal entry is made to “fake cash”.   If there is a debit to “fake cash”, this means that the effect of the balance change increases cash flow, and if there is a credit to “fake cash”, this means that the...

Today we will discuss the cost layering methods that are used within the periodic and perpetual inventory systems. Assumptions for purchases: 50 units purchased on January 1 at $10 each (50 x $10 = $500) 100 units purchased on February 1 at $11 each (100 x $11 = $1,100) 150 units purchased on March 1 at $12 each (150 x $12 = $1,800) Assumptions for sales: 250 units sold to customer on April 1 for $5,000 Journal entries to record purchases under Periodic Method (entry is the same whether...

In this episode, we will cover the journal entries made when using the perpetual and periodic inventory methods, and we will also go over the formula and journal entry to record cost of goods sold under the periodic inventory method.

Today we tackle depreciation and amortization, and we discuss fixed assets. Facts for following examples: Asset cost of $85,000, salvage value of $10,000, and a useful life of 5 years. Note: "Depr" represents depreciation expense, "A/D" represents accumulated depreciation, and "B/V" represents book value at the end of the year. I tried to align the columns as best as I could, but they appear differently on different platforms. Assuming the asset was put into service January 1 of year 1...

In this episode, we discuss unearned revenue.

Today we will discuss prepaid assets, and do some examples with journal entries.

In this episode, we will discuss accounts payable and journal entries related to accounts payable.

In this episode, we will describe accounts receivable, and we will go over journal entries related to accounts receivable.

In this episode, we will describe accounts receivable, and we will go over journal entries related to accounts receivable.

Today we will explain contra accounts, and we will also do some examples to demonstrate how the debits and credits work.

In this episode, we will briefly discuss the four main financial statements in accounting: the balance sheet, income statement, statement of owner's equity, and statement of cash flows.

In this episode, we discuss the flow of accounting from how our journal entries are recorded in the general ledger, summarized in the trial balance, and then presented on the financial statements and tax returns.

2 - A|LE-R|E & Journal Entries by James Edward Stewart, CPA/ABV, CFE

1 - Assets, Liabilities, Equity, Revenue, & Expenses (ALE-RE) by James Edward Stewart, CPA/ABV, CFE

This is an introductory episode to Accounting 101 with Jimmy Stewart.