I was confused with terms of ‘deferred’ & ‘ accrued’ , but you clarify’ deferred’ very well in this short video so that I‘ve got it now and I am looking forward to’ accrued’ one! Thanks James!😊
Thank you for explaining a concept I was completely stuck on! Watching your 4-part accrual series, as well as your earlier videos ie/ Balance Sheet etc, to help better understand what a textbook is doing a less than stellar job to explain! I have accomplished more in 24 hours watching your videos than the 3 months I've been at this Financial Accounting course - awesome job explaining everything - thank you! Your use of graphics and examples really brings it all home as well as concepts such as determining which statement is affected (ie/ releasing it from the Balance Sheet and assigning to the Income Statement), and why, really gives a stronger understanding than just memorizing. Oh, and DEALER is brilliant. Thank you!!!
My man, you are saving me with these videos. I was on the brink of break-down, found your videos. Had to get used to them at first, but now I understand your way of teaching and it is perfect. No more unclarities. You deserve every like of those 1200 likes! Much love
Congratulations! 🎊 you deserve even more! Keep it up 💪🏼 cause you are making such a big difference to all new accounting learners like myself! Thanks James!
I can make sure that you must have a good grasp of accounting so that you can interpret these knowledge very easy and understandable. Obvious genius. Thanks for your video
Accrual accounting produces the best financial statements for investors! It really helps investors predict future earnings much better than cash accounting. Thank you for showing us how to account for unearned revenue!
I wished that your videos existed in the years 1979 and on when I was working for Credit Suisse in Switzerland. Appreciate very much. As a retiree, I'm learning accounting now for fun.
I never comment on videos, however, I have to in this case. Absolutely incredible! The quality of your work and knowledge is amazing! I can't thank you enough!!
You are amazing keep up the good work, I can confidently step into my new role as Management Accountant with some more confidence as I was out of a job for sometime.
James you're the boss keep it up, You have improved my knowledge on matters of accounting. I don't if I will be too much by asking you to post a video on Accounts Receivables and Accounts Payables. Have a great day
Believe me you are going to rule in this category of videos.. More power to you bro.. All the Best. Subscribed to your channel in just few minutes of into it.. Awaiting many more damn eagerly...
These videos are so amazing! Do you think you could add another one to this set that covers depreciation? I get that it follows the same basic principle but just different enough to be confusing.
Super helpful content! You are a gifted teacher, and I'm greatly thankful. One question, if there is a "no refund" policy, I.e. no possible way to "lose" the cash, is it still accounted the exact same way?
hiii u re doing a greattt jobb and u re helpiong me understand everything soooo quickly and easily. can you make a video about VAT ? and how to record it and when THANKS A LOT
Thank you so much for sharing this information, I totally understand the entries however have a question regarding the issue of invoice, at which point the will raise the invoice taking the airline for example. As the first step of entry is a journal entry so what is the double entry when the airline raises the invoice ?
My question would be how do you remember to make each of these adjustments? Does Quickbooks have an alert or something you can setup so you remember to do it?
My question: say you have decided to stay in the UK and you don't fly back to Vancouver. Now there's $400 stuck in deferred revenue that you're never going to recognize. What's the best way to handle that?
Hey man, got a question. In this video you point out that you can't credit revenue in JR:2/Initial because of the accruals basis. Revenue & Expenses must be recognised as they are incurred-I understand that. However in your previous video of this mini series, when talking about deferred expenses you Cr Cash & Dr Insurance expense. Why was it ok to recognise the expense in that JR even thought it seems to contradict what you're saying in this video (to me at least)?
In the video "How prepaid expenses work" you credited cash, then debited insurance expenses, after this you credited insurance expenses and debited prepaid expenses. And I instantly got a question: why did we need a middleman in the form of insurance expenses and why couldn't we make a journal entry from cash to prepaid expenses from the start. I thought about it for a monent and came to the conclusion that maybe we need this intermediate entry for the future cash flow statement. But in this video you omit the revenue account. I'm new to accounting so it's a little bit confusing to understand.
Sorry for the second example, what does the first journal entry look like...? I see it entering as the adjusting J/E 2 or is that simply because we did the first example of the seaplane with J/E #1?
lmao nobody disliked this because everyone who watches this definitely has a quiz the next day that they are not ready for...... I am one of these people. Thumbs up.
Up to this point, I found the Debits=Destinations for Value & Credits=Sources of Value framework far more intuitive than focusing on whether a debit/credit increases/decreases an account. This case study is a bit of a mind twister though. It makes sense that Cash receives value (Debit) of 800 with its source (Credit) being Deferred Revenue - that's nothing new. Yet, the idea that Deferred Revenue receives value (Debit) of 400 with its source (Credit) being Revenue seems a bit strange. I got past it by thinking of it as "Real" Revenue that cancels the Liability of your business owing the customer. You could probably explain it better though. Or maybe I should just drop the Destination/Source framework?
Remember deferred revenue is a liability. Now think about how a liability works, for example a bank loan... When you take out a loan, you dr cash and cr. loan payable. So, the loan (source) is transferring economic benefit in the form of cash (destination) that you can use how you like. BUT, since it's also a liability, the deal is it wants something in return. It wants to be paid back in cash (dr'd), and when satisfied it will close off. In other words, _it is _*_both_*_ a current source _*_and_*_ a future destination of economic benefit._ In the case of loans, it wants to receive the future economic benefit in the form of cash (ie. It wants to be paid off). You know how that will look: you cr cash (source) and dr the loan account (destination). Thus when fulfilled, it is closed. But what about deferred revenue? Well, it works similarly: it has given you money... except it doesn't want money in return in the future. It wants goods/services in the future. And so, when you perform your work, what does that look like? You cr. Revenue, and this symbolizes that the goods/services were provided. You dr deferred revenue, signaling that you have satisfied the economic benefit it wanted, thus closing the account.
Hiii! Thank you for this video, really helped me a lot. Could you please explain in your next video about the closing entries with examples of not knowing the amount of drawings please? 🙏
We hit 10,000 subscribers today 🤘Thanks for all of the support!!!
You.Are.Amazing. Keep it up man!
@@Bce2099 Haha, thanks Paul. I will consider it!
@@DanzoB79 Cheers mate!
cool, so cr unearned revenue, what about taxes payable?
@@iwannaknow_2423 I left taxes out of this example to keep things simple.
I’m super happy you exist on TH-cam if I’m not studying all I do is watch your videos. You explain things so clearly. 🤗
Thanks Graciela, it's great to hear that you're enjoying these videos
I was confused with terms of ‘deferred’ & ‘ accrued’ , but you clarify’ deferred’ very well in this short video so that I‘ve got it now and I am looking forward to’ accrued’ one! Thanks James!😊
Great to hear it's making sense :)
Thank you for explaining a concept I was completely stuck on! Watching your 4-part accrual series, as well as your earlier videos ie/ Balance Sheet etc, to help better understand what a textbook is doing a less than stellar job to explain! I have accomplished more in 24 hours watching your videos than the 3 months I've been at this Financial Accounting course - awesome job explaining everything - thank you! Your use of graphics and examples really brings it all home as well as concepts such as determining which statement is affected (ie/ releasing it from the Balance Sheet and assigning to the Income Statement), and why, really gives a stronger understanding than just memorizing. Oh, and DEALER is brilliant. Thank you!!!
No problem Cheryl, it's sounds like you're feeling more confident with accounting which is fantastic news!
2 semests of studying in university and no understanding and one playlist in youtube everything is done. great work
Thanks, great to hear you're finding these helpful :)
I like how clear you speak. it looks like you speak to non native english speakers
Youuuuuuuu are amazing!!!! Better than any accounting professor I ever had!!
Very clear explanation and the drawing of the timeline same page with T accounts makes it even clearer.
Thanks, hope it made some sense!
My man, you are saving me with these videos. I was on the brink of break-down, found your videos. Had to get used to them at first, but now I understand your way of teaching and it is perfect. No more unclarities. You deserve every like of those 1200 likes!
Much love
I'm glad you're feeling more confident with your studies. All the best!
I should say you had a best teacher in teaching you the basics in a very practical way. I wish I had one.
Cheers buddy!
You should be given a lot of support. Your channel is one of the best on TH-cam.
Thanks for your kind words!
Keep it up. You are doing the best job on TH-cam. 👍👍👍
Thanks Gamal!!
Congratulations! 🎊 you deserve even more!
Keep it up 💪🏼 cause you are making such a big difference to all new accounting learners like myself!
Thanks James!
Thanks Nina!
Interestingly easier explanation. Bravo James.
Thanks!
I have become fan of this channel...he makes thing look so easy...thanks much😊
Of its kind - a tutorial/explanatory based channel, this one is 10/10. Thanks James
Thanks for your kind words!
I can make sure that you must have a good grasp of accounting so that you can interpret these knowledge very easy and understandable. Obvious genius. Thanks for your video
Thanks for your kind words :)
Beautiful Vancouver, seaplanes, and an Air New Zealand B777-200, I truly don't think financial education videos can get any better than this
Thanks Nathanael!
This was my interview question and I was sooo confused at the time. This video explains it clear
Glad it's making sense. Hope the interview went well!
You are fantastic in explaining things and you have help me enormously!!! God bless you always!!!
Thanks, great to hear you're finding these tutorials useful :)
u cant even imagine how much did u help me in my midterm. thank you very much, adore your content
No problem! I hope it went well :)
Accrual accounting produces the best financial statements for investors! It really helps investors predict future earnings much better than cash accounting. Thank you for showing us how to account for unearned revenue!
No problem!
I wished that your videos existed in the years 1979 and on when I was working for Credit Suisse in Switzerland. Appreciate very much. As a retiree, I'm learning accounting now for fun.
Good on you!
Thank you from Bali, Indonesia 🇮🇩. Superb explanation
No problem, happy to help :)
I never comment on videos, however, I have to in this case. Absolutely incredible! The quality of your work and knowledge is amazing! I can't thank you enough!!
Cheers Jwan, I'm glad you enjoyed it!
currently on this playlist and i highly appreciate them. so glad google gave me your link at the top of my search! Thanks
Great to hear that you are enjoying the videos. All the best!
Thank you man, you are great Accounting teacher. Believe believe me, no matter how little it may seem. You are changing the world.
Cheers for your kind words :)
James, thank you for your great videos. You are making accounting more interesting! Please continue making more videos :)
No problem, I have no plans to stop anytime soon
@@AccountingStuff please don't stop, we all need you, especially management account students like me. : )
@@esosa121 I don't plan on stopping anytime soon
you are SUCH a good teacher. Thank you.
Cheers, that's kind of you to say :)
Amazing explanations! This is more useful than reading the textbook!
Cheers Jay!
Whenever i have questions whilst studying Accounting i always refer to your channel. Matters are so thoroughly explained here! thank you so much!
Cheers Lucas! Hope your studies are going well :)
We want more videos please
YOU ARE THE BEST!!!
Thanks, I'm working on more as we speak!
I love T a/cs so easy the explanation with the "T", thank you James, you make it easy :)
Great to hear it's making sense
You're genius. So clearly explained.
Thanks Sophia!
You make learning so easy, wish I had a teacher like you in my uni days❤
You explain everything crystal clear. Thank you!
Cheers, hope it's making sense :)
The way you explain accounting situations is so easy to follow. Ever think of participating in creating your own CPA review course?
Thanks for your suggestion! I did a different qualification so I'm afraid I don't know too much about the CPA
Thanks, Merci, Gracias & Grazie; I’m so grateful that I wish I could thank you in more than three languages
Obrigado!
Well done, your tutorials are easy to understand, thank you
Thanks Lisa!
im currently doing a level 3 accounting course and i find your explanations really helpful thankyou so much
Cheers Alex, all the best with your course!
You are amazing keep up the good work, I can confidently step into my new role as Management Accountant with some more confidence as I was out of a job for sometime.
Congrats on landing your new job! That's awesome news :)
Thank you so much! You're the best James!
No problem Jonathan :)
Thank you Mr. Now i am clear with prepaid expense
Great to hear it's making sense!
James you're the boss keep it up, You have improved my knowledge on matters of accounting. I don't if I will be too much by asking you to post a video on Accounts Receivables and Accounts Payables. Have a great day
Hey John, thanks for your suggestions! Have a great day too :)
Nicely explained sir. I salute you!
Cheers Karim!
Thank you so much.....looking forward to many more video's. Glad I found you !
Cheers John! Plenty more coming soon :)
Hey ! Tommorow is my exams n u jus saved me:) Thanks
How did they go?
Believe me you are going to rule in this category of videos.. More power to you bro.. All the Best. Subscribed to your channel in just few minutes of into it.. Awaiting many more damn eagerly...
Cheers buddy, thanks for the sub!
nicely explained, thoroughly enjoyed the video .
Cheers Sarwar!
If it weren't for u, i would've never understood basics of accounting.
That's great to hear, glad it's making sense
You are so great sir, as your videos are helping me a lot. thanks
Thanks Manuth!
beautifully explained! thank you and God bless you!
Cheers Freshta! Hope it's making sense :)
Thank you so much for all your hard work 💜💜 ...your explanation makes everything look easy
Cheers Rahaf, you're most welcome!
I followed you on Instagram and subbed to your channel cuz your worth it
Legend!
Thank you so much, easy to understand!
you really a true brother
Thanks Azzam!
Thanks Dost🎉
Perfect explanation!!
Thanks Merlissa!
perfectly explained thank you so much!!!😄
Thanks! Hope it made sense :)
Brilliant and make easy to understand
Nice one, glad it's making sense :)
thank you for gaining knowledge. Success always for your. Brother.👏
Cheers Ade, all the best!
Very well explained, thanks a lot!!!
Cheers Rodrigo!
so touching for an excellent video
These videos are so amazing! Do you think you could add another one to this set that covers depreciation? I get that it follows the same basic principle but just different enough to be confusing.
Thanks Blair-Marie! Yes I would like to do a series on depreciation soon
not me watching all your videos before my accounting exam tomorrow... anyway I love your channel and thank you for the very cool videos ^-^
Good luck!!!
omg i finally understand the difference betwwen cash accounting and accural accounting!
Excellent explanation
Thanks mate
Excellent video. Thank you.
Cheers Lee, you're most welcome :)
Let's dive right into it 😊😊😊
i love ur vids bro, keep it up
Congratulations mate for your 10k subscribe
Cheers Hamumi!!
You're a miracle!
Damn it I'm late, congrats on 10k subs btw👏👏👏
Haha, no worries Tremain. Thanks!
Super helpful content! You are a gifted teacher, and I'm greatly thankful.
One question, if there is a "no refund" policy, I.e. no possible way to "lose" the cash, is it still accounted the exact same way?
I think it would be. Despite legal questions on whether payments are refundable, you are still expected to perform the service you were paid for.
BRO THIS WAS VERY HELPFUL FOR ME AS AN UNIVERSITY STUDENT !!! BRO I KINDLY APPEAL TO YOU THAT CAN YOU DO SOME FOR PARTNERSHIP IN ACCOUNTING???
Thanks for your request!
@@AccountingStuff "you're always welcome" ... hoping to see some of the partnership stuff in accounting from you soon...
I love youuuuu and I love youuuu and love your lessons of course
hiii u re doing a greattt jobb and u re helpiong me understand everything soooo quickly and easily. can you make a video about VAT ? and how to record it and when
THANKS A LOT
Thanks, very helpful!
You're welcome!
Well explained. Thanks.
Love you James!! What is the difference b/w Deferred tax assets and Liabilities, Deferred revenue and Deferred revenue expenditure. Pls explain
Thanks for your request!
Hi! You explained well in every detail. Thank you so much. Do you have a tutorial how to put post reference correctly? How does it work? 🤔
Thank you so much for sharing this information, I totally understand the entries however have a question regarding the issue of invoice, at which point the will raise the invoice taking the airline for example. As the first step of entry is a journal entry so what is the double entry when the airline raises the invoice ?
Great video. TY!
You're very welcome :)
My question would be how do you remember to make each of these adjustments? Does Quickbooks have an alert or something you can setup so you remember to do it?
Thank you man
You're welcome :)
My question: say you have decided to stay in the UK and you don't fly back to Vancouver. Now there's $400 stuck in deferred revenue that you're never going to recognize. What's the best way to handle that?
Did you find this out
Excellent!
Thanks, glad you enjoyed it :)
Hey man, got a question. In this video you point out that you can't credit revenue in JR:2/Initial because of the accruals basis. Revenue & Expenses must be recognised as they are incurred-I understand that. However in your previous video of this mini series, when talking about deferred expenses you Cr Cash & Dr Insurance expense. Why was it ok to recognise the expense in that JR even thought it seems to contradict what you're saying in this video (to me at least)?
awesome video
Keep this on!!!
Thanks mate, will do
@@AccountingStuff
Could you please make videos on stock holder's equity and it's components like contributed capital, retained earning?
@@md.tanjilurrahman5949 here you go → th-cam.com/video/Fr5oHEYrT2A/w-d-xo.html
In the video "How prepaid expenses work" you credited cash, then debited insurance expenses, after this you credited insurance expenses and debited prepaid expenses. And I instantly got a question: why did we need a middleman in the form of insurance expenses and why couldn't we make a journal entry from cash to prepaid expenses from the start. I thought about it for a monent and came to the conclusion that maybe we need this intermediate entry for the future cash flow statement. But in this video you omit the revenue account. I'm new to accounting so it's a little bit confusing to understand.
You could! I just did that as an example
@AccountingStuff Thanks, didn't expect a reply on a 5 year old video. Btw crazy editing skills.
@@СтаниславСтепанов-э6л No problem! I try to reply to every comment :)
Super helpful
You're the best 👌🏻
Cheers Ranu!
Love this! I had no idea that this was how I tracked prepayments!
Cheers Brook, hope it's making sense
helped me a lot.🙏🏽
That's awesome!
Sorry for the second example, what does the first journal entry look like...? I see it entering as the adjusting J/E 2 or is that simply because we did the first example of the seaplane with J/E #1?
The first journal entry was for the first example. So when he begins with the second example, its first journal entry will be J/E #2.
lmao nobody disliked this because everyone who watches this definitely has a quiz the next day that they are not ready for...... I am one of these people. Thumbs up.
Good luck!!
Up to this point, I found the Debits=Destinations for Value & Credits=Sources of Value framework far more intuitive than focusing on whether a debit/credit increases/decreases an account. This case study is a bit of a mind twister though. It makes sense that Cash receives value (Debit) of 800 with its source (Credit) being Deferred Revenue - that's nothing new. Yet, the idea that Deferred Revenue receives value (Debit) of 400 with its source (Credit) being Revenue seems a bit strange. I got past it by thinking of it as "Real" Revenue that cancels the Liability of your business owing the customer. You could probably explain it better though. Or maybe I should just drop the Destination/Source framework?
Remember deferred revenue is a liability. Now think about how a liability works, for example a bank loan...
When you take out a loan, you dr cash and cr. loan payable. So, the loan (source) is transferring economic benefit in the form of cash (destination) that you can use how you like.
BUT, since it's also a liability, the deal is it wants something in return. It wants to be paid back in cash (dr'd), and when satisfied it will close off. In other words, _it is _*_both_*_ a current source _*_and_*_ a future destination of economic benefit._
In the case of loans, it wants to receive the future economic benefit in the form of cash (ie. It wants to be paid off). You know how that will look: you cr cash (source) and dr the loan account (destination). Thus when fulfilled, it is closed.
But what about deferred revenue? Well, it works similarly: it has given you money... except it doesn't want money in return in the future. It wants goods/services in the future. And so, when you perform your work, what does that look like? You cr. Revenue, and this symbolizes that the goods/services were provided. You dr deferred revenue, signaling that you have satisfied the economic benefit it wanted, thus closing the account.
I love yaaa! thanks so much!
You are amazing , thank you so much !!! please can you do a video on closing entries? Thanks again😊
Cheers Catherine! Thanks for the suggestion :)
Hiii! Thank you for this video, really helped me a lot. Could you please explain in your next video about the closing entries with examples of not knowing the amount of drawings please? 🙏
No worries Kyle, cheers for your suggestion!