yo yo yo welcome back family we are back we're back again who are you
I am CPA strength I am the strongest licensed CPA in the state of Florida
great what do you do CPA strength I teach the world accounting video by
video the basics fundamental Bock by fundamental block by fundamental block
what are you doing today mr. C pH strength well I'm doing a FP my classic
series accounting for beginners 49 that's the one right before 50 all
righty yeah anyways 49 accounting for beginners 49 it's a viewers question it
is why is the truck an asset because it is an asset and why is the truck not an
expense this is of your question I've gotten
this question to this point right now when I'm making this video number 49
this board this is the most asked question I get which is great because
that means that a lot of people need to learn it like a lot of people have this
question I love the questions because that helps me make videos and it helps
to Inuk in the videos I make are helping people so can't beat it anyways this is
this is a been binging I know you haven't been binge watching me but if
this is if this happens to be like your first time look up here this is the link
of car this is the best card in the world the best playlist in the world
it'll make all your dreams come true it's kind of like rubbing a genie bottle
this is what this playlist is pretty much similar to I got here early this
morning to my office and I was just pumped because I made this I made this
rid this board out yesterday afternoon so I was pumped to
come in here wait up shit this video for number 49 and my computer wasn't working
my desktop my office let's go away work stuff although I do have a filing
cabinet because I'm a paper you know I don't really trust computers that much
anyway the computer wasn't working so that was distracting me and I was
thinking watch to shoot a video like screw mic and then I started think about
distractions and that's a skill itself to hone in I for me for me to do these
videos the best way that I think I can is that I have to have other distracting
about other stuff which is hard sometimes so sometimes you can let those
things go or you can take care of them now and I think you know growing up is
however you can have that balance so you can have your mind free which brings me
into my next thing is that just give me a give me you know five to ten minutes
of your time because the the lecture starting right now pretty much thank you
very much let's go we are going to learn why is the truck and ask that question
mark so I get that asked all the time why is the truck an asset and then I get
asked why is the truck not an expense very very summery answer is the reason
it is an asset and not an expense is the passage of time because here's wonder
here's the firt here's one journal entry when you buy the truck look the trucks
is an asset asset cache is leaving asset you're getting the truck an asset so is
it a sign when you buy it what you're going to have the truck for more than
one year you're going to depreciate it over five years so then at the end of
the year you're going to use the she Asian expense another journal
interest end of the year and you have depreciation expense accumulated
depreciation so it's going to be a asset now and in expense
lighter on so a truck is actually both it's actually like it's a beautiful
butterfly or whatever it was a caterpillar first out the butterfly so
that's sort of truck is you know two things it's interesting that will be an
expense so the passage of time is that this is how my mapping system DC a
learner debit credit asset draw expense liability equity revenue debit and a
positive form credits in the positive form are going up here normal balances I
did circle asset because that's what the truck is over here when we purchase it
and then I circled expense because the expense is the second journal entry over
here the debit to the second journal entry is the mapping system to keep
track of everything let's go over here this is our 1231 sixteen balance sheet
sorry how to abbreviate for space so this is the first thing we're looking at
this is the last day of the year for 2016
what's our balance sheet looking like assets equal liabilities plus equity
that's our balance sheet ceiling over here assets equal liabilities plus
equity this is part of DC Aylor we are equals M + assets equal liabilities plus
equity so our balance sheet 12 31 16 is assets
equal liabilities plus 5,000 equity the assets we have a needs to equal 5,000 is
we have current assets we have cash or $5,000 that's the only thing we have we
have cash 5,000 and it's equity of 5,000 so 5,000 equals 5,000 month days via our
balance sheet first day of the year in January 2017
look what happened we purchased the truck for $5,000 cash this is the first
first order of business for the new year that you've done for your business
bought a truck for $5,000 cash let's do a journal entry for that real fast debit
credit what's the journal entry going to be to
have cash yes you have cash purchase a truck for five thousand cash that means
you have money leaving the business money leaving the business is cash as an
asset leaving the business so it's going to be
a negative asset so it's going to be over here so that means it's going to be
a credit positive asset debit negative aspect credit so that means the credit
for $5,000 what's going to be our debit well what did you do you bought a truck
so we're going to put a truck on a journal entry as a fix app as an asset
as a fixed asset so it's going to be fixed that we're going to depreciate it
over the passage of time so if your journal entry
now you say possibly why is that why isn't this an expense right now you said
it's going to be expensive or why is in the gravy expense right now
my story is is our journal entry debit truck 5,000 cash 5,000 why is not an
expense right now because we just spent $5,000 on on a vehicle it's going to
last probably five years if it was going to last us one month this truck was
going to last us one month we'd say you know it's going to be over and done with
in this during this at the end of this period so if it was one month we we
would we play foot truck expense or a car expense or auto expense right
if you're renting for $500 a month or something but now this is going to but
you're going to have a truck is going to be depreciated or expense over five
years because probably this thing about you have a truck you spent $5,000 in a
pizza delivery truck right so you're delivering pizzas and you just bought it
for $5,000 now probably you're going to have it for five years if you would
expense it all meaning if you'd if you expense it right now to say whatever
expense that means that it wouldn't be worth anything on the books year to year
three in year four and year five so you're still using it but then you've
already expensed it also on your financial statements it's showing that
you have not you uh it's showing that you've already used it all up when in
essence you're still using the vehicle for four more years that's why you
wouldn't expense it right now and that is a since what in any sense what
depreciation is is the expensing of an asset through the passage of time might
be a JT blaze original CPH strength definition I'm not sure whoo anyways Wow
let's keep going so what's the balance sheet looking like after you purchased
the truck for five thousand catches the journal entry Denver truck credit cash
for five thousand what does that do to our balance sheet now notice these are
just two asset accounts so all it did was mess with our balance sheet all it
did was add to want to add to an asset and lower to an
over here went to the balance sheet noting the liabilities and equities
updated the exact same as this as the last day of the year 12 31 16 my G this
is the first day there I told you January's the first order business in
the new year what happened we went we had $5,000 cash we night we spent $5,000
cash we have zero cash now but we have a fixed truck in our balance sheet that's
what happened now let's go to the end of the year and do depreciation expense all
right we'd back for depreciation expense let's
go to the end of the year into a depreciation expense this is what
happened here at the end of the year depreciation expense adjust an attorney
for the truck all right now we're going to account for the truck now we're going
to do the expense for the truck first thing you do when you buy the truck
because it's going to be used longer than one year is you're going to set up
an asset you're going to know okay we're going to use this thing in our business
for multiple years and we're going to expense it off oh do over the passage of
time so usually a truck will be depreciated leave in five years you
think you bought it for $5,000 this truck okay so we're going to do a
depreciation we're going to depreciation journal entry and I just know
depreciation journal entry debit depreciation expense credit accumulated
depreciation and then I know they're going to equal that's me I'm 10 years
deep so where you're at is going to be all different let's go
and now before us why would you doing why are you depreciate this because and
how much and whatever because we just bought a truck for $5,000 we're going to
use it for five years basically where this this truck is worth a thousand
dollars to us per year every year 1,000 2,000 3,000 4,000 5,000
$5,000 for five years so it's really a thousand dollars a year $1,000 a year we
wanted to appreciate them want to expense it 1,000 dollars a year so in
five years we'll have five thousand dollars of expenses and then this truck
will have five thousand dollars of accumulated depreciation and the truck
will be depreciated to zero you'll have five thousand dollar spreads in five
years debit depreciation expense one thousand dollars because we're going to
expense it's over five years what's the crash to differentiation
expense accumulated depreciation four thousand dollars it's an asset
technically a contra asset the reason it be a contractor is because this is what
happens to the balance sheet on the last day of the year so this is last day of
year 16 first day of year 17 now this is the last day of the year 17 so all were
the first day of the year we we bought the truck last year we're depreciating
the truck I just wanted to show you now the experience this goes on the income
statement this from this journal entry this accumulated depreciation as a
contra asset contra asset meaning let's key on accumulated depreciation to the
truck so we're five thousand trucks five thousand when the trucks on the books
it's always going to be sacrified thousand because that you're going to
know the footy bought it for see here is the balance sheet at twelve thirty one
seventeen here's cumulated depreciation truck so five thousand accumulated
depreciation negative one thousand truck worth four thousand so that's why it's
called a contra asset because thing it's an asset
and it shows up with the other assets as a negative that's a humanoid
depreciation but that Caesar why is it we were fortunate why is the truck an
asset because you're going to use it in your business to make more money
overseas a period of a year why is it not an expense well it is an expense to
the passage of time we are going to expense it later period till next time
Squad doom soon
For more infomation >> JACKPOT FROM LEGENDARY CHEST : PARROT, TIGER AND 100 000 ANDERMANT! - Duration: 2:52. 
For more infomation >> [AMV] Undertale - Believer [NapisyPL] - Duration: 1:53. 
For more infomation >> Phong Thủy Đặt Bình Nước Uống Để Gia Đình Bình An Giàu Sang Chính Xác 100% - Duration: 11:45. 
For more infomation >> ( nesesario activar subtitulos y NESESARIO LEER DESCRIPCION) MIS PRIMEROS OC's - Duration: 1:13. 
For more infomation >> Пасхалки в Metro Redux: 2033 / Last Light [Easter Eggs] - Duration: 11:15. 
For more infomation >> Çox ləzzətli, bol tərəvəzli ət yeməyi - Duration: 5:04. 
For more infomation >> Secrets to freckles freckles simple at home with turmeric - Duration: 11:48. 
Không có nhận xét nào:
Đăng nhận xét