CLOSING ENTRIES: Everything You Need To Know
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- เผยแพร่เมื่อ 29 พ.ค. 2024
- 💥Closing Entries Cheat Sheet → accountingstuff.com/shop
In this video you'll learn what Closing Entries mean and I'll show you how they work using an example. We'll cover the differences between Temporary and Permanent Accounts, and a trick to remember which accounts fall into each category. You'll also see how to post Closing Entries in two different ways: the Long Way and the Short Way.
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⏱️TIMESTAMPS
00:00 - Intro
00:20 - The Accounting Cycle
00:41 - Closing Entries Definition
01:09 - How to Remember Permanent and Temporary Accounts (RED ALE)
02:13 - Permanent Account Definition
02:27 - Temporary Account Definition
02:54 - Opening Trial Balance
03:16 - Example
04:05 - Adjusted Trial Balance
04:49 - Creating Financial Statements
05:46 - How to Post Closing Entries
05:55 - Long Way: Step 1
07:34 - Long Way: Step 2
09:08 - Long Way: Step 3
10:09 - Long Way: Step 4
11:15 - Post Closing Trial Balance
11:39 - Short Way
12:34 - Recap: How to Post Closing Entries
03:37 - Outro
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Happy Holidays! Here are the timestamps...
00:00 - Intro
00:20 - The Accounting Cycle
00:41 - Closing Entries Definition
01:09 - How to Remember Permanent and Temporary Accounts (RED ALE)
02:13 - Permanent Account Definition
02:27 - Temporary Account Definition
02:54 - Opening Trial Balance
03:16 - Example
04:05 - Adjusted Trial Balance
04:49 - Creating Financial Statements
05:46 - How to Post Closing Entries
05:55 - Long Way: Step 1
07:34 - Long Way: Step 2
09:08 - Long Way: Step 3
10:09 - Long Way: Step 4
11:15 - Post Closing Trial Balance
11:39 - Short Way
12:34 - Recap: How to Post Closing Entries
03:37 - Outro
What-ss-App + ..1.._5_1_7_7_0_1_4_2_9_5
Please do ...Property, Plants and equipments
@@ruthaura5912 Thanks for your request!
Thanks alot dude,I have my semesters tmrw!!!(freaking out),can u also pls explain reducing balance method depreciation
@@somebye3sandiago623 No worries, and best of luck!!! All my depreciation videos are in this playlist... th-cam.com/play/PL5zKSeS09l324hTFoBXWq9T3tUY_LUrn2.html
I went through my whole 4 year degree in accounting never really understanding this. My Professors and text book were awful. And here in a single video, less than 14 minutes in length, I not only understand it, but it seems very logical. Seriously, amazing videos. Really appreciated. Thank you!
Me too :( .. It's all making sense now!!
@@gloriagaither8522 Same here!!
Accounting education is a joke. 15 year CPA here…I learned 95% of what I know on the job. Accounting is an “intellectual trade” best learned by doing.
Also, many of these professors never really worked in a CPA firm or even in industry..useless academics mostly.
The goal of textbooks is to make things complicated.
@@Michael-cb5nmas an aspiring cpa.. do you like your job rn.. and is it financially good enough
You’re genuinely the reason why I understanding anything this semester, man, you make this a lot less stressful because you explain it in such a simple way. Much appreciated!!!!!! ^^
Thanks, great to hear it's making sense. All the best :)
Damn I wish you were my professor for intermediate accounting :/
Just wanted to thank you so much for making these videos. I really appreciate the time and effort you put into making them not only informative but entertaining as well. You're hilarious man, absolutely love the content. You're a godsend to accounting majors and other people who want to learn about accountancy.
Cheers Joseph! Glad you're enjoying these. I'll have to make some more. All the best :)
bery bery niceu Joestar-san
I seriously cannot state enough my love for this channel. Every video hs helped me along in my accounting class. My professor doesn't respond to questions and her lectures are confusing. The mnemonics in these videos are so good.
You are an awesome teacher. I truly appreciate how practical your teachings are . Thank you
The talent required to explain these concepts in such a simple way is outstanding. I saved 3-4 hours of work by watching a 14 minute video of yours. Thanks so much man
Thanks for your kind words :)
Always so comprehensive,
Your information is so enjoyable.
Loved every minute of the video.
You're an excellent instructor.
Thanks James!
You're a genius.
None of my instructors in university were this good.
This is a really good example. Very detail and clear.
Hi James, I am just writing to say a big thank you for all the videos and tutorials. I had failed my accounts module for my law degree three times but the moment I got your content, it was like a light bulb switched on. Got my results two weeks ago and I passed!!! Thank you man, will refer anyone who ever needs help. God bless you!
Congrats Austin, that's fantastic news!!!
That smoothy and simplified explanation and acting made my Job Hunting easy and cool🤙. Cheers mate❣️
I love your videos, they're incredibly helpful and easy to follow! You're awesome, thank you so much for your help
In love with your lessons, i wish if you were our college lecture, we must became an expert now. Hats off❤️
Thank you so much. I'm going back to work as an accountant after a long break. Your videos are a great refresher.
Entertaining & educating at the same time ... you are a genius!
Thank you so much for this video ❤ How I wish you were my lecturer. You’re funny and fun at the same time 😊
Thanks for your feedback :)
THANK YOU ❤️ YOU ARE SAVING MY LIFE
I have always struggled with this but I cannot believe how simple the whole concept now looks .....
Thanks a million times!
You've opened my eyes!
No problem Patrick, glad it's making sense :)
You are truly a blessing G. My teacher cannot even come close to teaching me these topics, but with your videos I get it shortly. Thanks man you're a good guy!!!
Bro in which class u study
Just took midterm yesterday, I got 51/65. Ty sm. Going to understand it fully so I could have full and easy apprehension
Great mnemonics, clarity of thought, structure and presentation. You're a credit to accounting.
Thanks for your kind words :)
Man thank you sooooo much I went through dozens of videos to get some sort of help. Really helpful!!!
Just wanted to say a huge thank you for all your videos, they are a world of help to me!
Thanks, that's great to hear!
Your videos have helped me so much. Cheers, James!
Hi, I just want to say your videos on Accounting Basics are so informative and useful for my studies! Recently, just started my degree in accounting, and these videos are so needed for my better understanding. REALLY appreciate your efforts and time spent on them! 💜
If it's possible, can you do a short one on Reversing entries? (I'm a bit confused about this, with adjusting entries)😢
Just wanted to thank you for what you do! I've spent 5 hours trying to understand closing entries for my accounting final and I understood everything with you in just 14 minutes!! I just discovered your channel and I'm definitely going to keep watching your videos :)
Great to hear it's making sense! All the best with your studies :)
You are amazing! I am blessed to find you.
this video is really helpful.
I've made it this far. Thanks to you, I'm not giving up.
Thank you James, these videos are still helping people. Im a new small business owner starting from scratch in bookkeeping. I had no idea where to start and found your videos. I now feel comfortable enough to start learning QuickBooks and launch my business. Thank you 🙏
Pay your local accounting firm to do it if you don't have the time!
James, thank you for showing the long way first. When I train a new employee I always show them the long way first. And, then after a couple of weeks I show the short way. Not understanding the process does not help the employee or the business in the long run. I finally understand closing entries! Kudos to your teaching style!
No problem! Glad you found it useful :)
@@AccountingStuff Thanks James. Please set up a patron account. I would pay you! I support one other TH-camr "That Chapter" $2.00 a month. Your knowledge, teaching and delivery style are fantastic. -Susan
@@julioson50th21 Thanks I'll keep that in mind :)
This guy literally makes time to answer to the questions in the comments, that shows how dedicated he is & his motive is to educate others well. Thanks a lot sir. You are truly a blessing for us, accounts has become easier cuz of u. Love from India 😊✨
Thanks for your kind words! All the best :)
Love from Korea!
I just bought your Accounting bundle Notes :)
Thank you for explaining everything!
Really enjoyed the presentation in this and others in the series (Credits / Debits, Equity, The Accounting Equation). Clear knowledge transfer with nice examples. Thanks for the videos.
Thanks!!
Really. Great. Very short way of explanation
Just one word for you brother....... Amazing!!!! keep up the good work.
amazing video!!! I love how charismatic you are, even accounting is fun with you - I can only imagine what a great person you must be in real life!
Thanks for your kind words!
Thank you so much Dear Sir. very nice and easy way of understanding all this... love
Thank you so much! so helpful! wish u the best
I've been stressing so much in my online accounting classes, feeling like I'm not getting the in-person experience I need to grasp the concepts. Yet, since your videos, I feel I may not only pass, but excel! Can't thank you enough for your brilliance. All hail TH-cam!
This is great to hear! I have a feeling you're going to smash it too. Best of luck
I'm finally done with the Accounting Basics Playlist. Thank you very much!
Congrats!! Hope it helped :)
Great video. Always a joy to watch. Thanks for creating it!
Cheers buddy, glad you enjoyed it!
reconfirmed everything i learned in class today! thanks again
So grateful for this amazing summary and love the RED ALE acronym! Cheers!
Thanks Julie!!
You are very awesome! Thank you for the refresher and additional knowledge. I always try to ditch the EOY closing entries. Whew! Now I can practice.😊
Hope it made sense!
Wow... your explanation is amazing. You make it so much simpler.. just wow.. thank you so much! Please keep on uploading :D
Thank you for this video, helped me in my act class.
Bro this is awesome one.. I missed reading closing entry topic in my whole education. Now understood perfectly.
Great to hear it's making sense :)
Hi James, I just got into the accounting stuff and enjoying it. it is clear and understandable.
Thanks Esther!
really you deserve the appreciation for your amazing channel.
Thanks, I'm glad you're finding it useful!
Very easy to understand. Really helpful. Thank you ❤
Glad it was helpful!
Have found ur channel today and have had a little marathon helps so much.
I study international business management at university and there’s so much to take in so it helps with breaking down everything really appreciate it.
Almost 200k as well
Thanks, I'm glad you're finding these useful! All the best with your studies :)
this was very helpful, thank you
Clear explanation, complete step by step guide. Accurate useful information. I am currently designing a basic accounting cloud system and this is the only video helped me with the IT design process for Closing entries. Thank you very much.
Cheers Val! Best of luck with your project :)
Very timely videos, mate. We just already started learning Closing entries in class this afternoon.
Perfect timing!
Glad to found your chanel. Description accounting theory don't need to be boring at all. Thanks !
Cheers Marcin!
You are my saving grace as I pursue my BA in accounting! Thank you for your videos :)
Happy to help!
This helps a lot! Thank you so muchhhhh
Thank God there is a channel like this💙
I'm thinking of going for accounting and I wanna make sure i'm gonna love it and boy I can't wait for college💙
Great to hear that you're considering accounting! Best of luck with it all
You make everything so easy! Thank you
Happy to help!
Great to see you again man!!
Thanks buddy :)
@@AccountingStuff what is basic eps and diluted eps??
Eps :Earnings per share
This account is gold. Engaging and easy to follow examples. Accounting is easyto just memorize and dump but this helps me understand whats really happening
Cheers Paul! Glad you're finding the vids helpful :)
Something I've been reviewing in school that may be a good series for you is the different analysis ratios.
What they are, why they are used and how to do Liquidity/Activity/Profitability/Coverage...Just an idea. By the time you would do them I won't need them - haha - but it may be worth your while for others.
Thanks for the great videos by the way!
Thanks for your suggestion! I will definitely cover them in the future.
Although the video is short,i have learnt a lot from it,well done
Not just on this video but all your videos, you are a genius. Everything is explained and done perfectly. You are also fun to watch. Excellent work.
Thanks, I'm glad you're enjoying them :)
This could not have come at an even more perfect time thank you so much you just made my life so much easier
No worries! All the best :)
It is really useful, simple, and logical, thanks for your efforts and your time,
Cheers buddy!
watched all 46 videos in this playlist and they are so well explained - thank you, James
Wow! Good effort on watching them all
@@AccountingStuff Likewise for making them, I bet that took longer!
Deserves more views, thank you ♥️
This video was amazingggggggg. !!!! thank you so muchhhh
Thank You so much James for making this amazing videos! As a finance student learning about accounting, this videos are very helpful! They give me incentives to further my understanding of accounting!
No problem, I'm glad you're finding them helpful. All the best with your studies!
I have to tell you that, this is probably the best explanation, I have seen and look forward to enroll
Thanks!!
I have a technical accounting interview tomorrow and just thought I'd brush up. Thanks for the help!
I didn’t make sense this for 10 years, thanks for solve my question I love you !!!
No problem, happy to help :)
Great video! Thanks for your help!
No problem, you're welcome :)
fun way to explain accounting!😄
Bro you do deserve a subscribe.
lots of appreciation.
Thanks for explaining all this to help me better understand.
No problem Laura, hope it's making sense :)
Thank you very much Sir.
Your lectures have helped me very much in my accounting knowledge.
No problem at all! Great to hear you're finding these useful :)
Thank you for these entertaining, high production value videos. Your tutoring really helps supplement my online accounting class. I was so confused at first but it’s sinking in now. 🙏🏻💐
Great to hear it's making sense :)
You're amazing and your explanations so helpful!!
Thanks!!
You are a lifesaver my man
Sir, can I have your explanation on 'How to evaluate the intangible assets, like Goodwill, Trademark, Patent etc.?
101 Explanation on INTANGIBLE ASSETS?
Very nicely and briefly explained .. awesome 👌👌
Thanks Areeba!
Well explained, thank you!!!
Thanks!
Just watched about 15 of your videos to help with my test today.. Thank you!!!
How did it go??
@@AccountingStuff quite well thanks to your videos!
@@charlottenewman2587 Glad to hear it! Fingers crossed you get the marks you were after
welcome back bro, good to see you? amazing lesson, learnt alot, 👍🏼, keep it up
Thanks Fahad and cheers for your support!
Beautifully done!
Thanks Eddie :)
My guy is just a legend we all appreciate you
G'day James! I was missing your videos already! Thank you once again for the amazing content, my accounting final is tomorrow and I was having trouble with this content.
Cheers mate!
No problem Pedro. Best of luck in your exam tomorrow!!
You helped me a lot . Thanks
No problem, you're very welcome :)
Brilliant and easy. Thank you 😊
Thanks Salman :)
I really appreciate your content. it is truly amazing.
Happy to hear that!
Thank you so much ! Much appreciated
No worries!
Thanks so much for making those videos it was very simple
No problem, hope it's all making sense :)
Great job 👌
Love your explanations! Amazing work ❤
Would love to see something on dealing with multiple currencies - bank revaluations and unrealised / realised gains.
Thanks for your request!
nice videos. thank you for sharing with us. this means so much.i hope you have happy holidays
You too! Have a happy christmas :)
You explained this WAY BETTER than my professor. I don't understand why the professor is trying to make this so challenging for us.
Thanks! Great to hear it's clicking for you
Brilliant summary
Cheers Paolo!