Debit Archives - Page 3 of 5 - Accounting Instruction, Help, & How To (Financial & Managerial)

Note Receivable Example

Written by Bob Steele CPA - Accounting Instruction, Help & How To on July 23rd, 2020. Leave a comment

In this presentation we will discuss notes receivable, giving some examples of journal entries related to notes receivable and a trial balance so we can see the effect and impact on the accounts as well as the effect on net income of these transactions. first transaction, we’re gonna have 120 day 7% note giving the company EMI and extension on past due AR or accounts receivable of 6200. When considering book problems and real life problems, one of our challenges is to interpret what is actually happening what is going on, which party are we in this transaction in? Therefore, how are we going to record this transaction when we’re looking at notes receivable? A common problem with notes receivable is the conversion of an accounts receivable to a notes receivable. So in this case, that’s what we have. We have an accounts receivable here that includes an amount of Due to us by this particular company in AI so these are our books, we have a receivable people owing us money for prior transactions goods or services provided in the past and they owe us in total, all customers owe us 41,521 this customer in particular owes us 6200 of this amount in the receivable that could be found not in the general ledger which would give backup of transactions by date.

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Allowance Method VS Direct Write Off Method

Written by Bob Steele CPA - Accounting Instruction, Help & How To on July 18th, 2020. Leave a comment

In this presentation, we will take a look at a comparison between the allowance method and the direct write off method. When considering both the allowance method and the direct write off method, we are considering the accounts receivable account. Remember that the accounts receivable account represents some money that is owed to the company, typically from sales made in the past, on account haven’t yet received the funds for sales made in the past and therefore, the company is owed money. We see this amount on the trial balance in this case 1,000,001 91. We then want to know information about that, including who owes us that money. We can’t find that typically in the GL as we have a GL for every account the GL only giving us the information by date. Typically, we want to see that information also broken out in the subsidiary ledger saying who owes us this money.

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Allowance Method Accounts Receivable-financial accounting

Written by Bob Steele CPA - Accounting Instruction, Help & How To on July 17th, 2020. Leave a comment

Hello in this presentation we’re going to take a look at the allowance method which is of course related to the accounts receivable account, we will be able to define the allowance method record transactions related to recording bad debt recording the receivable account that has been determined to be uncollectible recording every single account that has been collected after being determined that it was uncollectible. So we’re going to take a look at some different transactions, the most common transactions when dealing with the allowance method and see what those look like and why we use the allowance method. We’re going to work through a problem. So what we’re going to have here is we’ve got our accounting equation, of course we have our trial balance, I do suggest working problems to take a look at a trial balance because it can give you the context in which to work problems. So here’s what we have. We’ve got the assets in green, the liabilities are going to be orange, the light blue is the capital account and the equity section.

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Direct Write Off Method

Written by Bob Steele CPA - Accounting Instruction, Help & How To on July 16th, 2020. Leave a comment

This presentation we will be discussing the direct write off method. The direct write off method as it relates to accounts receivable, quick summary of accounts receivable accounts receivable is a current asset, it’s an asset with a debit balance, we are going to be writing off certain amounts for accounts receivable that will become not due or not collectible at some point in the future. There are two ways to do this one is called the allowance method. The other is the direct write off method, we will be using the direct write off method here the non generally accepted accounting principles method being this direct write off method. However, a method that is typically much easier to use. Therefore, when considering whether or not to use an allowance method or direct write off method, we want to consider one do we have to use an allowance method due to the fact that we need to make our financial statements in accordance with generally accepted Accounting Principles, or are we able to choose between having an allowance method or direct write off method? If we choose to have a direct write off method, it’s probably because we’re thinking that the receivables that will be written off are not significant.

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Accounts Receivable AR Subsidiary Ledger Explained

Written by Bob Steele CPA - Accounting Instruction, Help & How To on July 15th, 2020. Leave a comment

Hello, in this lecture we’re going to talk about the accounts receivable subsidiary ledger, the subsidiary ledger being the ledger that will be backing up the account of accounts receivable showing on the trial balance with 27,000. In it, in this case, accounts receivable being that accounts that represents what is owed to us. If we were the owner of the company, we might ask our accounting department, how much money do people owe us? In this case, it would be 27,000 would be the reply. Next follow up question would most likely be who owes us that money? And have we called them when are we going to get paid that money? In order to answer that question, we cannot look at the normal backup balance for all accounts that being the general ledger accounts. If we look at the GL we do get some detail in terms of the activity that has happened. However, that activity is not going to be in terms of who owes us the money. It’s in terms of date.

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Accounts Receivable Journal Entries

Written by Bob Steele CPA - Accounting Instruction, Help & How To on July 14th, 2020. Leave a comment

Hello in this presentation we will be recording that journal entries for business transactions related to accounts receivable otherwise known as the revenue cycle. We will be recording these using debits and credits. At the end of this we will be able to list transactions involving accounts receivable record transactions involving accounts receivable using debits and credits and explain the effect of transactions on assets liabilities, equity, revenue, expenses and net income. We’re going to be recording these transactions up here on the left hand side constructing those journal entries in accordance with our thought process our list of questions to most efficiently construct the journal entries. We will then be posting them not to the general ledger but to this worksheet here so that we can see the quick calculation of the beginning balance and what is happening to the individual accounts as well. account types, in that we have the accounts categorized, as is the case for all trial balances. accounts have been in order that order been assets in this case in green, the liabilities in orange of the equity, light blue and the income statement accounts of Revenue and Expense Type accounts. first transaction perform work on account for $10,000.

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Petty Cash

Written by Bob Steele CPA - Accounting Instruction, Help & How To on July 11th, 2020. Leave a comment

In this presentation we will talk about how to set up and record a petty cash fund. Setting up a petty cash fund seems like an easy thing to do to have a minimal amount of cash that we can have expenditures for small purchases for however, it can be a little bit tricky to set up the petty cash fund and there is kind of a shortcut to recording transactions for the petty cash fund. So we’ll go over the process of setting up the petty cash fund recording the initial investment in the petty cash fund and then recording the activity from the petty cash fund. Now the objective of course in this will be to have not just the checking account where we need authorization in order to take money out of the checking account, we would typically want anything going out of the checking account to be by electronic fund transfer or by cheque so that we have a clear paper trail of what is going on the petty cash However, if we just have some small items that we need to take care of with cash and as to convenient to have small items with cash to be paid.

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Average Inventory Method Explained

Written by Bob Steele CPA - Accounting Instruction, Help & How To on July 3rd, 2020. Leave a comment

Hello in this lecture we’re going to be talking about the average inventory cost method we will be selling our coffee mugs again we will not be using a specific identification but rather a cost flow assumption VAT assumption being the average method, we will be using the same worksheet I highly recommend working on a worksheet such as this when when doing any cost flow assumption for inventory, which will include a purchases section, a cost of merchandise section and an ending inventory section in which pieces we can then calculate the unit cost times the quantity to give the total cost for each of the sections. This can answer the most amount of questions that can be asked for this top. If we take a look at a trial balance, we can see that the inventory on the trial balance is at 5000.

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Last In First Out LIFO Periodic

Written by Bob Steele CPA - Accounting Instruction, Help & How To on June 29th, 2020. Leave a comment

In this presentation we will discuss the lastin first out inventory system on a periodic basis rather than a perpetual basis. As we go through this process, we want to always be comparing those to one, the LIFO or lastin first out system to other systems such as first in first out and average, as well as comparing the perpetual system to the periodic system. We’re going to go through this by looking at a problem the problem going into a worksheet such as this, I do recommend learning this worksheet. This worksheet should look repetitive if you seen the first in first out presentation as well as presentations for the perpetual system.

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Cash Payments Journal Service Company 50

Written by Bob Steele CPA - Accounting Instruction, Help & How To on June 19th, 2020. Leave a comment

In this presentation, we will take a look at a cash payments journal for a service company, the cash payment journal we’ll be dealing with transactions where we have cash payments, that’s going to be the factor that will be the same for all transactions with cash payments meaning this column here cash payments will always be affected wish they kept cash payments journal cash payments journal will be used when using more of a manual system rather than an automated system. However, it’s good to know what the cash payments journal is, even if using an automated system because it’s possible that we or it’s very likely that we would need to run reports that will be similar in format to a cash payments journal. And it’s useful to see this format or how different types of accounting structures can be built.

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Accounting Instruction, Help, & How To (Financial & Managerial)

Helping Learn Accounting – Financial & Managerial

Posts with the Debit tag

Note Receivable Example

Allowance Method VS Direct Write Off Method

Allowance Method Accounts Receivable-financial accounting

Direct Write Off Method

Accounts Receivable AR Subsidiary Ledger Explained

Accounts Receivable Journal Entries

Petty Cash

Average Inventory Method Explained

Last In First Out LIFO Periodic

Cash Payments Journal Service Company 50