Accounting 101 with Jimmy Stewart – Details, episodes & analysis

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                                  $100,000

Income Summary                       $40,000

           Wage Expense                                           $40,000

Income Summary                       $30,000

           Computer Expense                                  $30,000

Step 2 – Transfer Income Summary to Equity (capital account)

                                                                  Debit           Credit

Income Summary                            $30,000

           Capital Account – YOUR NAME                 $30,000

Step 3 – Transfer contribution/distribution accounts to capital account

                                                            Debit          Credit  

Contributions – YOUR NAME     $10,000

          Capital Account – YOUR NAME           $10,000

      

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.

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.

In this episode, we discuss how each type of account in ALE-RE is affected by journal entries, and we learn the debit/credit language of accounting using A|LE-R|E. The lines separate the types of accounts with normal debit balances from those with normal credit balances. This is the most important episode to listen to if you are just learning accounting. Example Journal Entry: Dr. Cr. Utilities Expense 150 Accounts Payable 150

In this episode, we briefly discuss each type of account in accounting: Assets, Liabilities, Equity, Revenue, and Expenses.

Hi Everyone, Welcome to Accounting 101 with Jimmy Stewart. I hope to explain accounting to you the way I wish someone had explained it to me when I first started out. This isn't meant to be your only source of learning accounting, but this is meant to advance your knowledge in accounting by reinforcing the fundamentals that you absolutely must know to understand accounting. I am a forensic accountant from New York State, and I have learned a lot of tricks over the years that I know will help a lot of other people out as well. Stick with me and I promise I will help you understand accounting in a way that will let you master it. I hope you all enjoy. Please be patient with me as I figure out what I'm doing. James Edward Stewart, CPA/ABV, CFE

The Fundamentals and Principles of Accounting:

https://www.amazon.com/Fundamentals-Principles-Accounting-Edward-Stewart-ebook/dp/B0151VR3AC