Prepayments and Accruals | Adjusting Entries
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- เผยแพร่เมื่อ 2 มิ.ย. 2019
- 💥Adjusting Entries Cheat Sheet → accountingstuff.com/shop
🖊Adjusting Entry Practice Questions → accountingstuff.com/practice-...
Adjusting Entries are an essential part of the close process in Financial Accounting. This video explains what Adjusting Journal Entries are and how they fit into the big picture of bookkeeping. If you're using the Accrual Basis of Accounting then watching this is a must!
You'll see how Adjusting Entries are split into two main groups: Prepayments and Accruals. You'll also find out how these are broken down further into Prepaid Expenses, Deferred Revenue, Accrued Expenses and Accrued Revenue.
I'm creating a whole mini-series devoted to this topic which will include worked examples for each of these four types of Adjusting Entry...
▪ Intro to Adjusting Entries → • Prepayments and Accrua...
▪ Prepaid Expenses → • How Prepaid Expenses W...
▪ Deferred Revenue → • Deferred Revenue Expla...
▪ Accrued Expenses → • Accrued Expenses Broke...
▪ Accrued Revenue → • Accrued Revenue MADE E...
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Which type of Adjusting Entry do you find the hardest?
Prepayments and Accruals. It usually gets complicated for me when I get to the dates.
@@nathaniela.diawuo5597 Yeah they can be tough ones to work through
Than you for the amazing tutorial s,a video on provisional debt will be very helpful
@@jessemusokotamumba8586 Thanks Jesse and cheers for the suggestion!
I wish you would have shown an example, I'm more of a visual person and felt it would have helped me more. I love your videos but this one really lost me as I already feel lost in this topic.
Learnt more in this 10 minute video than I did reading a 30 page chapter (having spent hours!). You have a gift! Keep these videos coming!!
No worries, I'm happy to help :)
hey do you happen to remember the book you read?
Facts!
@@nsl7721 probably the college textbook
Bro this is what I was saying fuck college
This guy is the goat. I can’t afford a accounting course so I’m learning from you and taking notes. Thank you 🙏🏾 Yoir changing lives
Good luck, hope it's making sense!
You can use ACCA -X . The first four courses are free.
Try Coursera or any other MOOC and apply for a scholarship .
Thanks for the awesome videos on accounting stuff. It’s hard to find videos that aren’t dead boring and awful when it comes to accounting stuff so you definitely filled a void! I appreciate the help.
Thanks for this video! I'm getting close to an Associate's degree in Accounting, and this was a nice refresher on some of the basics.
I just found this channel and I'm in my last year of studying accounting. I thought maybe I might not graduate on time but these are way easier to understand and might save my future. Thank you.
Honestly you're among the best here on youtube. Contents are well organized, easy to understand, and with little bit of fun moments. Great work, looking forward to learning all the accounting stuff from you, even the advanced topics
Thanks for your kind words :)
A thousand times, THANK YOU FOR THIS! Your videos are so well organized, entertaining, easy to watch, and short and sweet without shorting us on information. This helps so many people (like me). You're the man...
Cheers buddy! I'm happy to help
I appreciate your videos. You are a true educator, and you do it in a way someone like me can understand. I wish you were teaching my class. I'm not grasping much from the book. I'm glad I came across your videos. Thanks for sharing your gift.
Watched your adjusting entries series right before my CH3 adjusting entries & closing accounts exam and I got a 127 out of 130 points.
These videos are so helpful, THANK YOU!!!
Boom 👊 You smashed it! Congrats :)
I just found your channel, and it's a lifesaver!! taking my first accounting class now, 3 more to go in my Business Administration degree program. It's so cool that you share your knowledge. I'm definitely purchasing your cheat sheets for my notes. Thank you
Hey Hope! Thanks, I'm glad you're finding the content helpful. Best of luck with your class!
He has cheat sheets?! Where can I buy?
Also I'm sure you've graduated by now. Congratulations!!!
I had to pause/replay this video several times to begin to grasp the concept. Very helpful video. Thank you!
Our teacher explained each entries but I was still confused. I totally understand after watching your video and just only have to remember revenue record it when earned and expenses record it when incurred. What an easy way to clarify those entries. Fantastic tutorial ❤love it❤
this was much better than the 3 hour lecture with my prof.. wow hats down! thank you
I do a lot of training and teaching and have to say these are fantastic videos, you've made these difficult concepts much easier to understand. I even shared them with my client.
Cheers George!
Thank you so much! During pandemic, while working from home & while my sweet little boy is sleeping, I need to be multitasking: working, cooking, learning and doing chores. It's so easy to understand from your videos and the fact that I don't have to be away from my son and still learning, it's such a big deal!! Thank you!
No worries, hope it's all going well :)
The simple analogies you use such as "Source" & "Destination" for dr. & cr. and "Buyer" & "Seller" for adjusting entries is top notch in book! makes working through accounting a thought process instead of a memory game! Thank you! @Accounting Stuff !
Cheers Johnny, happy to hear that it's helping!
Dude you are a master. Literally no reason to buy a college textbook.
Thanks for your kind words!
These videos have helped me SOOO much. I appreciate everything you do and how you explain accounting. You're are helping me keep my sanity!!
No worries Heather! It's motivating to know that the vids are helping you out.
Just started my Accounting I class 4 June. I just wanted to say thank you. I had misconceptions about credit and debits, and your videos helped me a lot. Now whenever i don't understand the reading material, I come look to see if you have covered it first. Please keep up the great work, you are helping a lot of people.
Hey, it's great to hear that you're finding these vids useful. Best of luck in Accounting I
Thank you, I have been watching your channel for about six weeks now. It is very helpful. You deliver well.
Cheers Colleen, glad you're enjoying the vids!
you really saved my life for my exam, without you, I would never understand the difference between journal entry and adjusting entry
I am a 19 year's old Indian doing my Us CMA and your videos are just awesome and soo much helpful to me, even I have recommend your channel to my friends, thanks a lot sir please keep on posting vidios.
Thank you for your video. I have watched so many closing entry videos, so far yours is the best. You are awesome.
You've simplified things for me on so many occasions. Thank you James!
You're most welcome :)
You are so smart by simplifying complex accounting process into digestible content. Kudos!
Thanks for your kind words!
bro, i just discovered you a week ago, and you make it so easy to learn thank you
I just found your channel, you really save my time and a lot of this stuff make sense now. Thanks so much for shearing .
Just started my Bsc in Accounting and Finance and you, my dude, have been a lifesaver during my level one modules
No worries, best of luck in your degree!
This dude is why am going to pass Accounting 1! Cheers dude if I ever see you out imma buy you a beer or 2 hehe guess you could call it a liability on my side
It's all you! Best of luck with it
You are truly making the impossible, possible for me, so grateful, cheers
I feel like I've hit the jackpot with you as I navigate my way through a Distance Accounting Technician Program! This is a complete 180 career change for me and I was getting pretty nervous until I found you (via my husband) Thank you for putting this out there as a vital resource for all things bookkeeping and accounting! I'll be watching for more releases and have already purchased a cheat sheet. AMAZING! I won't be gate keeping this resource, I will be sharing this with my online classmates pronto! Thanks again lifesaver!
Thanks Sarah! Great to hear these videos are helping you with your program. Cheers for your support, all the best :)
Only just started accounting and your debits/credits video was a life saver ! Subscribed and will be coming back for more for sure ! Thank you
Cheers and all the best with your studies!
I'm a new MBA student coming from a non-business background. Your channel is helping me so much get caught up!
Thanks, that's great to hear. Best of luck with your MBA!
Im loving your videos! They usually help me understand what I am finding confusing in my books but I am currently stuck on how to journal ACCRUED EXPENSES-WAGES. From the original Wages Journal Entry, to the Adjusting Entry and the Reversal Entry. Please can you do a video xx
This helped me a lot, also I like your vibe while you are explaining it so clear!! Compliments @Accounting Stuff
Hi James, your channel has been huge help on my studies. If i graduated, it is all thank to you!! Definitely gonna mention your channel on my yearbook. you're my hero and thank you for making my accounting studies smoothly. Thank you for providing a better education explanation = better future of mine too ❤. Could you make a video on suspense account, adjusted trial balance please, without your video i'm so lost 😢
Thanks, it's great to hear that you're finding these vids helpful for your studies. Cheers for your suggestions, I'll keep those in mind for future vids
Hat off to you....I wish you were lectured me 20 year ago 👍👍👍 best wishes for the future
oh my god !!! where were you for these years man..... may God bless you for making us clear on this topic keep up your good work .
Cheers! Will do :)
Still the best :) I just read my chapter and got lost and came back here! Thankyou for the play list, it helps a lot!
No problem, you've got this!
The time line really helped me! Thank you!
thank you so much, i can't explain how many times ive rewatched this as a refresher. going to have a long quiz today and midterm exam for tomorrow!
Good luck!!!
Please please keep making videos! I just started my degree and you are definitely the most pleasant and makes sense!!
Will do! Best of luck with your degree :)
Thank you so much for the series, you really should be bigger than you are. The way you explain this is much better than the droning older folks in other vids. Keep it up
Cheers for your kind words!
Nice explanation. This video help me to clarify the concepts of prepayment and accruals.😃
I'm a bachelor's degree accounting student. Your videos are SO helpful. Thank you so Much!
Cheers Andrew, hope your studies are going well!!
you have helped me soooo much! Because of strikes some teachers are making us learn some lessons on our owns so these videos have been really helpful for me!!!!
No worries Kristina, I'm happy to help
Thank you for such a clear explanation! Before watching your video, I've spent three days trying to get what the term "ajusting entries" means)))
You're welcome!
You have helped me more than my book I bought for $240!!!! College is taxing!
Ouch, those textbooks are so expensive
Your videos help me more than my textbook.
OMG, your content is just purely amazing! What you say is clear, understandable and I just love the visual aids too. THANK YOU for doing this!! :)
I don’t know what I’d do without this channel! I always come here after watching lectures
Thanks Rachael! Hope your course is going well :)
Thanks for the clarification. I always confused the difference between accrued revenue and deferred revenue.
Best teacher with best video God give you more good in your life.
keep it up dude, u are helping a lot of people. ur content is timeless and as a result will be forever a a book to be passed on for generations and generations. Unless vast changes will be made on accounting policies years from now which i dont believe it wil affect your content relatively because accounting is just so raw to be a stable field. again, keeo it up dude. lot of people need you. cheers #420
Cheers Harvy! Thanks for your kind words :)
James....You have a very good presentation style and use of language. Thanks for accepting my observation so politely.
All good :)
Hey keep it up man! This made is SO easy for me to learn this topic!! Thank you so so much. Keep it up! You’re saving so many students.
Cheers Hanna, will do!
Thank soooooo muuuuuch I love your videos. I’m a not kidding when I say that I learn more from 1 of your videos then a 3 hour lecture. My professor is a nice person but a horrible instructor please never stop making these.
No worries Carlos. Sorry to hear that your professor isn't getting the message across. I don't plan on stopping any time soon!
Accounting Stuff I’m actually about to buy the cheat sheet as I have an exam every week
Hope it helps!
Same !
Excellent explanation
Your videos are so helpful, you are really a great tutor, keep it up..... Am getting ready for my exams and I feel confident all because of these videos 💃💃
Thanks Mwila, glad you're finding the vids helpful. Good luck in your exams!!
Thanks ! I’m from palestine and I’m studying Accounting in the university , your language is clear and understandable even for people who don’t understand English very much .
Thank you! All the best in your studies :)
You actually had made adjusting entries difficult and confused the heck out of the topic. Great job!! watch other videos and learn, there are some good ones
Thanks for your feedback :)
Thanks a lot PRO, absolutely clear and easy to understand. Even for a non-accounting person like me.
Cheers, glad to hear it makes sense
Thank you sir again for this very helpful video already crying because i cant get this on my head and you sir is a life savior this is easier to understand 😢 thank you sir
No worries John, hope the video helped!
Great video! Accrual Accounting is king! It presents financial statements in the most useful way to investors.
Thanks mate
Thank you! Great video! I'm understanding it better now. I look forward to the other videos. I am mostly having trouble with the T-accounts and journal entries.
Hi! If you're having trouble with T-accounts and journal entries, I could help explain them. Just let me know which part of those two topics you're having trouble with.
@@financialcounting5603 Thank you! It's doing the T account and journal entries for accruals and deferrals that I am having trouble doing.
@@valepvh Not a problem! Let's say we have a deferred revenue adjusting entry to make, for example. Let's say on 1/1/2019, we sell a 2 -year magazine subscription and collect $1,000 up front. Since we did not perform the service yet, we have to initially record this as a liability account called deferred revenue. This entry would be a debit to cash for $1,000 (we obtain cash) and a credit to deferred revenue for $1,000 (the obligation to perform the service increased). Then let's say we make our adjusting entry on 12/31/19 (about 1 year later). We have performed 1 year of the service out of the 2 years that we promised. This journal entry would be a debit to deferred revenue for $500 (this decreases deferred revenue because we performed half of the $1,000 service which if $500) and we credit revenue for $500 (We increase our revenue because we performed half of the $1,000 service). I hope this helps. Please let me know if you have any question!
@@financialcounting5603 yes, that makes sense! Thank you so much!
Awesome!, well detailed explanation about the topic I tried to understand and now finally grasped the concept of the topic, Thank you so much for this meaningful and helpful video 🙏💯
Thanks! Great to hear it's making sense :)
Whenever I have questions about accounting, I try to search if you have a video about it and Yay you have🥰 Thankyouuuu🥰.
Nice one! I've actually made a whole playlist for this topic :)
It really help me alot, thankyouuu.
Really you are doing a great job my dear, well prepared and organized and videos design, its clear, there is a huge efforts behind, all the best for you and keep going😊
Cheers Mohamed, glad to hear you're enjoying the vids. Plenty more to come!
Those examples helped me out. Had to do an example on adjusting entries and completing entries and got a 92. Thanks James!
Congrats! That's a great score :)
@@AccountingStuff Thank you!
You are really good at explaining accounting. 👍🏻
Thanks!
Thanks Eddie!
Perfect and clear explanation ❤❤❤❤
This guy is such a life saver
I like how clearly and confidently he speaks everytime
Thanks :)
This clarify things so well.
Thank you so much. Greetings from the Philippines 🇵🇭❤️
No worries Raniel!
Thank you so much for these high quality videos!
Really really helpful video! Thank you. Keep up the great work 👍
I am a CAT student and your channel really help me on my studies. Thank you very much💖
That's great to hear thanks. All the best with your studies :)
this is exactly what I need, the bigger picture etc, thanks
had learning this myself for 1 hour and still confused. Yet, in your video I understand it in just 10 mins. wow!
Glad to hear it's making sense!!
your channel is the best!! thank you for these helpful videos
Thanks Fatima!!
OMGGG THANK YOU SO MUCHH FOR THE RECAPP!!! U're teaching methods r so helpfull!!
You're most welcome :)
Just wow, am taking back the school text book (Frank Wood's) and downloading this video, thanks I really appreciate your work! 🇿🇲❤️🇿🇲👍🙏👌🙌
No problem, best of luck with your studies!
Thank you for the understanding of adjusting, I was so confused 🤷♀️ 😟
Hope it's making sense :)
THANK YOU it is even more helpful than what my professor taught!
Cheers Ren!
Please keep posting accounting stuff. It helps me a lot!!!!
Will do
thank you so much for making this video series you're saving my grade in accounting
No problem!
Your videos are very clear. i am a great fun. thanks for sharing your knowledge and making our studying easier.
Hey Luwam, great to hear you're enjoying them. I plan to release some more soon.
Excellent communicator.
gosh thank you I love this channel so much
Thanks so much. I'm getting clearer now on this topic.
Cheers, that's great to hear :)
You made learning so much fun and understandable especially for a subject that is abit hard
Cheers Tony! Hope your studies are going well :)
@@AccountingStuff yes it is, infact Im about to finish and big thanks to your videos and its well thought out content💯❤
Hello,
First, I want to thank you for every single video. They are amazing.
Secondly, would you happen to have any video on closing entries?
I can see it has been quite a while since you haven't posted anything. It's a shame.
💯
Here is the closing entries video: th-cam.com/video/e1z2lpdQyGQ/w-d-xo.htmlsi=_U2Xkb7H1v7xJxhH
Thanks, man. I really appreciate you putting this together.
All good Tony, hope it helps!
I learnt so much from this video. Thank you!
That's great to hear!
hello!! thank you so much for making this mini series, i have understood more by watching your videos than solely reading a book. do you have a video for a worksheet? if not would it be possible to make a video about it? thank you!!
Thanks for your request! I don't at the moment but I'll keep the topic in mind for future vids
LOL.. it get it now, it makes total sense. You did a far better job than my instructor.
Glad it's making sense!
My final is in a couple of hours but I haven't been able to study due to being sick. Your videos are a live saviors!
Good luck!!!
@@AccountingStuff thank you!
you're welcome :)@@user-hl9fh9rf3m
WOW, thank you James you are a lifesaver, could you make a video about Case Study? that will be very helpful.
Thanks in advance
Hey Bassel, glad to hear that you found the video helpful! Cheers for the suggestion, case studies would be an interesting topic for sure.