Discover shows related to Accounting 101 with Jimmy Stewart, based on actual content similarities. Explore podcasts with similar topics, themes, and formats, backed by real data.
17 - The Objectives of Financial Reporting & Concepts of Accrual Accounting
Season 1 · Episode 17
Monday, December 23, 2019 • Duration 14:30
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.
16 - Closing the Books at the End of the Period (The Closing Process)
Season 1
Saturday, February 2, 2019 • Duration 11:43
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
15 - Adjusting Journal Entries (The Adjusting Process)
Season 1
Saturday, January 26, 2019 • Duration 09:40
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.
14 - An Overview of the Accounting Cycle
Season 1
Saturday, January 19, 2019 • Duration 06:55
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 period;
Step 3 – Prepare adjusting journal entries and record on general ledger;
Step 4 – Prepare an adjusted trial balance as of the end of the period;
Step 5 – Prepare the financial statements;
Step 6 – Prepare and record closing journal entries to reset temporary accounts;
Step 7 – Prepare a post-closing trial balance.
13 - How to Dominate Indirect Cash Flow Statements (Fake Cash Method)
Season 1
Saturday, January 12, 2019 • Duration 11:01
Example # 1
Our Accounts Receivable balance increased by $20,000 from the end of last period to the end of this period.
1. Accounts Receivable is an asset, so it must be debited to increase its balance.
2. Create journal entry:
Debit Credit
Accounts Receivable $20,000
Fake Cash $20,000
3. A $20,000 increase in Accounts Receivable = $20,000 cash flow reduction on the statement of cash flows.
Example # 2
Our Accounts Payable balance increased by $10,000 from the end of last period to the end of this period.
1. Accounts Payable is a liability, so it must be credited to increase its balance.
2. Create journal entry:
Debit Credit
Fake Cash $10,000
Accounts Payable $10,000
3. A $10,000 increase in Accounts Payable = $10,000 cash flow increase on the statement of cash flows.
Example # 3
Our Accrued Expense Payable decreased by $25,000 from the end of last period to the end of this period.
1. Accrued Expense Payable is a liability, so it must be debited to decrease its balance.
2. Create journal entry:
Debit Credit
12 - FIFO & LIFO (Cost Layering Methods)
Season 1
Friday, December 7, 2018 • Duration 26:08
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 LIFO or FIFO is being used):
January 1: Debit Purchases $500; Credit Accounts Payable $500
February 1: Debit Purchases $1,100; Credit Accounts Payable $1,100
March 1: Debit Purchases $1,800; Credit Accounts Payable $1,800
Total Debits to Purchases = $3,400 ($500 + $1,100 + $1,800)
Journal entries to record purchases under the Perpetual Method (entry is the same whether FIFO or LIFO is being used):
January 1: Debit Inventory $500; Credit Accounts Payable $500
February 1: Debit Inventory $1,100; Credit Accounts Payable $1,100
March 1: Debit Inventory $1,800; Credit Accounts Payable $1,800
Total Debits to Inventory = $3,400 ($500 + $1,100 + $1,800)
Journal entry to record sale - Periodic Method (entry is the same whether using FIFO or LIFO):
April 1: Debit Accounts Receivable $5,000; Credit Revenue $5,000
Adjusting journal entry to record Cost of Goods Sold and Inventory - Periodic Method (Using FIFO):
December 31: Debit Inventory $600 (for ending inventory); Debit Cost of Goods Sold for $2,800; Credit Purchases for $3,400; Credit Inventory for $0 (for beginning inventory)
Adjusting journal entry to record Cost of Goods Sold and Inventory - Periodic Method (Using LIFO):
December 31: Debit Inventory $500 (for ending inventory); Debit Cost of Goods Sold for $2,900; Credit Purchases for $3,400; Credit Inventory for $0 (for beginning inventory)
Journal entries to record sale - Perpetual Method (FIFO):
April 1: Debit Accounts Receivable $5,000; Credit Revenue $5,000
April 1: Debit Cost of Goods Sold $2,800; Credit Inventory $2,800
Journal entries to record sale - Perpetual Method (LIFO):
April 1: Debit Accounts Receivable $5,000; Credit Revenue $5,000
April 1: Debit Cost of Goods Sold $2,900; Credit Inventory $2,900
11 - Perpetual & Periodic Inventory Methods & Cost of Goods Sold
Season 1 · Episode 10
Sunday, November 25, 2018 • Duration 17:13
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.
10 - Depreciation, Amortization, & Fixed Assets
Season 1
Saturday, November 10, 2018 • Duration 28:00
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 and utilizing the straight line method:
Year Factor Depr A/D B/V
1 0.2 15,000 15,000 70,000
2 0.2 15,000 30,000 55,000
3 0.2 15,000 45,000 40,000
4 0.2 15,000 60,000 25,000
5 0.2 15,000 75,000 10,000
Assuming the asset was put into service October 1 of year 1 and utilizing the straight line method:
Year Factor Depr A/D B/V
1 0.2 3,250 3,750 81,250
2 0.2 15,000 18,750 66,250
3 0.2 15,000 33,750 51,250
4 0.2 15,000 48,750 36,250
5 0.2 15,000 63,750 21,250
6 0.2 11,250 75,000 10,000
Assuming the asset was put into service January 1 of year 1 and utilizing the double declining (don't!) balance method:
Year Factor Depr A/D B/V
1 0.4 34,000 34,000 51,000
2 0.4 20,400 54,400 30,600
3 0.4 12,240 66,640 18,360
4 0.4 7,344 73,984 11,016
5 0.4 1,016 75,000 10,000
Assuming the asset was put into service January 1 of year 1 and utilizing the sum of the years' digits method:
Year Factor Depr A/D B/V
1 5/15 25,000 25,000 60,000
2 4/15 20,000 45,000 40,000
3 3/15 15,000 60,000 25,000
4 2/15 10,000 70,000 15,000
5 1/15 5,000 75,000 10,000
9 - Unearned Revenue (Deferred Revenue)
Season 1
Sunday, November 4, 2018 • Duration 07:59
In this episode, we discuss unearned revenue.
8 - Prepaid Expenses (Prepaid Assets)
Season 1 · Episode 8
Sunday, October 28, 2018 • Duration 07:17
Today we will discuss prepaid assets, and do some examples with journal entries.
Accrued Expense Payable $25,000
Fake Cash $25,000
3. A $25,000 reduction to Accrued Expense Payable = $25,000 cash flow decrease on the statement of cash flows.
