I was extremely overwhelmed having not done accounting in several years and now transferring to a 4-year straight into intermediate accounting. But finding this channel. WOW. Professor McLaughin you are a Godsend!!!
Well I dont think you can pass a CPA exam with this but... I think if you seriously learn all that he teaches here, and hit some books on the side, you can definetly get a Junior job in an accounting firm or any company that needs an accountant. Technology and changes in GAAP and the IFRS have made learning accounting, at least in the US and countries that follow the International Financial Reporting Standards extremelly straightfoward, altrough I don't want you to underestimate how much there is to learn about it, if you wanna become an expert in the subject.
If there was a net loss, your T-account for Income Summary would have a debit balance. In order to zero-out the T-account, you would debit Retained Earnings and credit Income Summary.
Paying dividends. Sorry, I should have been more clear! If your company pays out dividends, then the dividends account will need to be closed out at the end of the period. The "Dividends" account increases with a debit, which means to zero it out you will credit Dividends and debit Retained Earnings (because paying dividends out reducing a firm's retained earnings). Hope this helps! Best wishes :)
@@Edspira Can't we record a dividends payable (liability) account when dividends are declared? Dr RE Cr DP? You consider it as expense when you recorded in the income statement?
I was extremely overwhelmed having not done accounting in several years and now transferring to a 4-year straight into intermediate accounting. But finding this channel. WOW. Professor McLaughin you are a Godsend!!!
This was one of the topics that I struggled with earlier on, but I get it now thanks to this channel :)
You can pretty much get Certified as a Bookkeeper on your own with these videos and a good accounting book at hand!.
Well I dont think you can pass a CPA exam with this but... I think if you seriously learn all that he teaches here, and hit some books on the side, you can definetly get a Junior job in an accounting firm or any company that needs an accountant. Technology and changes in GAAP and the IFRS have made learning accounting, at least in the US and countries that follow the International Financial Reporting Standards extremelly straightfoward, altrough I don't want you to underestimate how much there is to learn about it, if you wanna become an expert in the subject.
excellent teaching skills
Thanks for making this topic so clear to me... Intermediate accounting 1 is kicking my but!!! lol
Thank you for your awesome explanation. Based on this topic what if the firm makes a net loss then What is the journal entry??
If there was a net loss, your T-account for Income Summary would have a debit balance. In order to zero-out the T-account, you would debit Retained Earnings and credit Income Summary.
6:56 "let's just make this T-account for ETTT! :D"
Made it easy to understand, thanks.
Does it matter which side you put the 0 on the t account??
So it goes like this: Revenue - Expense = Income summary. Income summary - Dividends paid = Retained earnings
Revenue
(Expense)
-------------
*Income Sumary*
(Dividends paid)
--------------------------
*Retained Earnings*
when you say dividends you mean paying dividends? or receiving
Paying dividends. Sorry, I should have been more clear! If your company pays out dividends, then the dividends account will need to be closed out at the end of the period. The "Dividends" account increases with a debit, which means to zero it out you will credit Dividends and debit Retained Earnings (because paying dividends out reducing a firm's retained earnings). Hope this helps! Best wishes :)
@@Edspira Can't we record a dividends payable (liability) account when dividends are declared? Dr RE Cr DP? You consider it as expense when you recorded in the income statement?
@@Edspira you did the same entry in another video - post-closing trial balance, I didnt underatand
AWSM ONE THNKUUU SIR IT HELPED ME ALOTT
Thank you so much for ur videos!!
For purposes of the CPA exam, I am guessing that they want us to use Income Summary?
Thank-you
No problem!
i thought income summary is closed to the capital account, and then drawing is closed
Very Nice...Thank You Very Much
you are amazing
Love it
Very thankful!
You're welcome. Thanks for watching!
whoever invented accounting... lol
a complicated being for sure!
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Lol Ryan is pretty funny
4:08-4:11 Just.....nah. Lmfaoooo.
Isn't Retained Earnings just Earnings - Dividends? Why are you then zero-ing it out with a Dividend, lol.
Im still studying But I think retained earnings would be the money kept for the business for that period.