Posts with the net income tag

QuickBooks

Accounts Receivable Journal Entries

Written by Bob Steele CPA - Accounting Instruction, Help & How To on . 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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QuickBooks

Weighted Average Periodic System

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

In this presentation we will discuss the weighted average inventory method using a periodic system. The weighted average method as opposed to a first in first out or last In First Out method, the periodic system as opposed to a perpetual system. We want to keep the other systems in mind as we work through this comparing and contrasting. We’re going to be working with this worksheet entering this information here. It’s important to note that this worksheet is a worksheet that can typically be used with any of these inventory flow type problems of which there are many. We have first out last in first out the average method. And then we have a perpetual and periodic system which can be used with any of those methods. It’s also possible for questions to ask for just one component such as cost of goods sold or Indian inventory, and therefore it can seem like there’s more types of problems that we can have in that format as well. If we set up everything in a standard way, even if that weighs a little bit longer for some types of problems, it may be easier because we can just memorize that one format to set things up, this would be a format to do that.

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QuickBooks

Last In First Out LIFO Periodic

Written by Bob Steele CPA - Accounting Instruction, Help & How To on . 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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QuickBooks

First In First Out (FIFO) Periodic System

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

In this presentation we will discuss first in first out or FIFO using a periodic system as compared to a perpetual system. As we go through this, we want to keep that in mind all the time that been that we are using first in first out as opposed to some other systems lastin first out, for example, or average cost, and we’re doing so using a periodic system rather than a perpetual system. Best way to demonstrate is with examples. So we’ll go through an example problem. We’re going to be using this worksheet for our example problem. It looks like an extended worksheet or large worksheet, but it really is the best worksheet to go through in order to figure out all the components of problems that deal with these cost flow assumptions, including a first in first out lastin first out, or an average method, and using a periodic or perpetual for any of them.

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QuickBooks

Perpetual & Periodic Inventory Systems

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

In this presentation, we will compare and contrast the perpetual and periodic inventory systems as we track inventory through the accounting process. First, we’re going to look at the perpetual system, the system we typically think of when recording transactions that deal with inventory. So if a transaction doesn’t say it’s using a periodic or perpetual system, you probably want to default to the perpetual system. We have here the owner, we have the customer, we’re saying that we’re selling this inventory this Inc for a cost of 8450. To the customer, the customer is not paying cash but pain, an IOU to the owner. Typically, under a perpetual system. We break this out into two components one, the IOU, or the accounts receivable or sales component. The component similar to what would be seen if we were not selling merchandise but a service company.

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QuickBooks

Consistency Concept

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

In this presentation we will discuss the consistency principle as it relates to inventory and inventory assumptions. First, we’re going to define the consistency principle and then apply it to an assumption such as the flow assumption such as do we use something like a first out last In First Out average inventory system, the definition of consistency principle according to fundamental accounting principles, while 22nd edition is a principle that prescribes use of the same accounting method methods over time so that financial statements are comparable across periods. So, here we’re considering the assumptions that we’re making with the flow of inventory those being either first in first out last in first out or the average method typically for the cost flow assumptions, because those are assumptions.

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QuickBooks

Inventory Methods Explained and compared FIFO LIFO 15 600

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

Hello in this lecture we’re going to talk about estimating inventory methods methods such as first in first out last in first out and the average method. Last time we talked about specific identification when we were selling the inventory of forklifts. We use specific identification meaning we had an ID number for each particular forklift and knew exactly which forklift we sold and the cost of that particular forklift. reason that makes sense for forklifts is because they’re relatively large, they could be distinct in nature, and they have a fairly large dollar amount in comparison to other types of inventory. If we’re selling something else, like coffee mugs over here, we may have a large amount of coffee mug they may be all completely the same.

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