Accounting 1: Program #8 – “Journal Entries and the Trial Balance”

Ok below we are once more lecture number 8
last lecture we started to present the journal access and also today we are mosting likely to proceed speaking
Regarding journal entries and talk about some new concepts. What we did below for
the face to facers just a minute or so ago is we took a quiz over the account balances
proceed as well as reveal that on the Elmo if you would certainly for you folks that are enjoying this
in your home what I would do if I were you is I would merely stop this and also get a piece of
If, paper out as well as also though I can not offer you the test for point see how you would do
and also reduces with the debit.Alright let ' s discuss the quiz and'y ' all can keep track'of just how you did.
Alright I ' m just mosting likely to place debit as well as debt in the columns for it ' s. a debit or debt equilibrium consulting earnings is what? Credit rating keeps in mind payable? Also a credit.
land is? Debit pre paid insurance policy? Debit notes receivable? Another asset it'' s a debit account. receivable? A debit accounts payable? Credit scores wage cost? All expenditures are debit.
equilibrium accounts.Unearned revenue is

an obligation with a what? Credit scores equilibrium account owner ' s. withdrawal sometimes that methods individuals out. It ' s a debit balance'account cash is? Debit. funding? Credit score
inventory? Is an asset with a debit equilibrium account what concerning lease cost? Like I claimed all expenditures are debit equilibrium accounts income tax obligation payable? Debt gained.
profits? Credit scores what about pre paid rent? Debit incomes payable? Credit advertising and marketing expense? All costs are debit as well as tools? Debit incredible so there'' s your solutions.
Did anybody get perfect? Alright if you got eighteen or.
a lot more you might take a Hershey'' s kiss as well as if you folks at home obtained a eighteen or more when.
you were doing it if you send me a self-addressed stamped envelope I will certainly place a Hershey'' s kiss. as well as send it to your house.Ok alright I desire you to understand these currently the manner in which I grade.
these for you deal with to facers is this quiz as all tests are worth 10 factors ok I take.
minus one for every person that you missed so if you got allow'' s state fourteen right you just
. obtained a 4 on the test does that make sense? If you just turned, and the reason I do that is.
I don'' t desire people obtaining fourteen and believing ah I did quite great no you didn'' t. you did four much better than if you flipped a coin. I won'' t provide you an unfavorable rating,.
an eight out of 10 Kara? Do you have an inquiry? “” So fifteen would be five”” fifteen would be.
5, eleven would be one as well as ten would be no so individuals think 10 need to be five 10.
ways you did like the coin flip so I want you to really, truly understand these ok.
I do these points because I love you simply keep in mind this.Alright understand those

recognize those.
well. Ok we obtained some homework we got to look at, yet before that I intend to talk concerning.
you specify as well as book marking this web page once you reach it as well as log in appropriately as.
I'' m not doing. And then as soon as you ' ve visited you'' re going to see your class ok currently once again.
there'' s different classes right here depending on the term go down to accounting one let.
Now I
want desire point aim a couple things to you now right now currently isn'' t. fully completely occupied assignments? You'' re going to see phase one task and when.
it deserves factors you see this little icon over below resembles a paper ok. Those are worth points, those have due days ok you need to do those if you want to obtain.
those factors ok. Now for you deal with to facers I'' m informing you your due days in class and also.
I generally do it off camera so I wear'' t foul up people seeing this at home. For you individuals.
in the house I will be emailing you your link assignment due days ok that will certainly be a vital.
email as well as I will certainly say attach assignment due dates so please be complying with that. Now this.
If you go back to the screen this thing that looks like a barbell on its side, other point.
that is something that you can do if you intend to it'' s unworthy factors it ' s not required. its kind of a walkthrough for method

tool.Has anybody done that by coincidence? Increase your.
hand what did you individuals think that underwent it? It was respectable ok what they sort of.
did is they sort of narrated slides, as well as from time to time they'' ll have something for you. to do like a workout as well as you can obtain responses right there ok so this is an excellent point. .
if you'' re simply easily accompanying in this class doing fantastic you might not require to.
do this, yet I constantly say if you'' re having a little much more technique I would certainly encourage.
you do these. Now it'' s unworthy factor now I can inform that'' s done it I ' m not
attempting to. allow sibling right here however if somebody enters my course as well as they'' re flunking the class.
and also they'' re saying I ' m completely lost well I wish I can see'that you ' ve undergone. those at'the very least, create that ' s a helpful source, however the little pinhead point is for technique.
only and it is unworthy factor the other one'' s are monitor those assignment due dates.
ok.Alright ok allow ' s most likely to our research the homework I designated was this on the screen.
this is the homework I assigned were going to undergo all 4 of those however we'' re. not undergoing the order that they ' re provided. The first one I wish to experience I think.
fasts research study two 8 so allow'' s go via fast research two 8 alright. Quick research study. two eight we had among these before we obtained another one.
Suggest the economic declaration. on which each of the following things shows up usage I for earnings statement, E for the declaration.
of proprietor'' s equity, and B for balance sheet ok. Structures gets on what? Annual report interest.
cost? Revenue declaration owner'' s withdrawals? Declarations of owner'' s equity office materials? Equilibrium materials lentil income? Income declaration insurance policy expenditure? Revenue statement solution. earnings? Income statement interest payable? Annual report accounts receivable? Equilibrium. sheet salaries expense? Earnings declaration tools? Equilibrium sheet pre-paid insurance coverage? Balance. sheet I guarantee you will certainly have one similar to this on the examination ok talking the test we have.
this lecture which is lecture number eight lecture number nine lecture number ten and also.
after lecture number 10 you that'' s when you ' re excellent to take the

test.So I told you all when.
that examination is going to be if you'' re late whisper as well as ask your neighbor, due to the fact that I don'' t want. to state it below it will certainly blend the individuals in the house. We have this lecture and also two even more.
Allow'' s. go to I want to go to exercise two 4, exercise two four ok for each of the following identify. As well as I'' m simply going to put the solutions up there I ' m not going to read each one.
The account is? As well as right here exactly how do you increase that account? And that'' s what they ' re trying to stress.
we claim that that is a credit normal equilibrium what we'' re claiming that is how you increase.
it with a credit history. Ok to ensure that'' s just what'they ' re trying to make clear below. Is that the typical.
Alright I want to show you something here ok. I'' m going o reveal you. I'' ll provide you an extra Hershey kiss if you do.
is I have a Bulgarian student and she created for.
this illustration I asked her to compose my name David in Bulgarian ok.Now I'' m assuming.
That'' s David may be it suggests jerk or something as well as she'' s at house having a great laugh.
now, yet I believe it implies David in Bulgarian currently allow me ask you this if my objective was by.
the end of the day to find out how to create my name in Bulgarian do you think I could do.
that? I think I might go back to it I put on'' t know this resembles what a building with. a roofing system on it that must be the D'' s the A ' s are the same the V simply has a little point. right here resembles a backwards N, that appears like a B but it
should be V it ' s Bulgarian I. don ' t understand, but if I wanted to I can memorize just how to compose this is that correct would you. agree with that? Currently allow ' s claim I did remember just how to create my name in Bulgarian for my better half.
and kids so they can be so pleased of me.And then my better half said that'' s trendy ok can you. write my name and the children name in Bulgarian do you assume I'' ll be able to do it? No I could.
not I would certainly not have the ability to do it why do I state this I claim this because let'' s. go back to making the journal entrance ok that was the journal entrance for when we acquired.
workplace products for cash money fix? Now there will be pupils that the idea procedure they.
have is I wear'' t understand truly understand what he ' s doing here, however by golly if'that ' s the journal. entrance for when you buy workplace materials with cash I can remember this right? And if.
I asked my fifteen year old to just memorize this I'' m going to claim I desire you to memorize. this this is a journal entrance for purchasing office supplies with cash tomorrow I'' m going. to ask you to write this down he can compose this down can ' t
he? And also there are trainees. that will remember this similar to I would remember that name David in Bulgarian, yet what
' s the. problem keeping that? It doesn'' t transfer to other points right'? I can ' t write various other names. in Bulgarian right? Or if a person asked me to write my entire name all three names in.
Bulgarian I can'' t do it.Well I put on'' t want you to manage, by simply memorizing these points.
I desire you to recognize what'' s taking place here I desire you to recognize that if we purchase.
workplace supplies with cash money that cash is dropping by two fifty and office materials is going.
up by 2 fifty after that with your knowledge I want you to understand that the method you make.
money decrease is you credit history it the method you make workplace materials boost is you debit.
it and that'' s helps you do the journal access you can talk with and also clarify to someone.
you can state well we debit workplace materials, because office supplies is increasing as well as.
it'' s a debit equilibrium account therefore we need to debit it as well as we credit rating cash since money. is likewise a debit balance account hence if we intend to lower it we must attribute it.Does.

that make feeling? That'' s a lot various than just memorizing it? I want you to clarify.
it and comprehend so that you can transfer it to various other things cool. Now we also chatted.
last period last duration was the one when we actually start speaking about journal access. We went additionally as well as not only did we reveal the journal entrance this is called making the journal.
entry this is called publishing to the T-account or to the journal ledger fix? Currently remember.
different color in between this is what it looks like if you'' re making a journal access right. here this is what resembles if you'' re publishing a journal or a t-account I guarantee on the.
examination I'' m going to ask you to make concerning 9 or 10 journal entries, please, please do.
not have me turn the page as well as see a great deal of t accounts this is not making the journal.
entry you with me? But this action comes prior to this step this is our symbols to tell us.
that we need to go workplace supplies t account and also debit it 2 fifty, we have to go to the.
money t account on the credit report side as well as placed two fifty in credit scores it for 2 fifty.Alirght.

releases allow'' s have a look after that at quick research study two six. Quick research two 6 asked us to do.
some journal access did it not? Alright allow'' s take a look at that I ' m just going to reveal.
them all below and well talk via tem a little bit. Now I'' m not going to keep doing
. what I'' m going to do today allow me get this on below first, but there is a comprehended.
debit column and understood credit report column headings right below remedy? Yet I'' m not going. to keep doing'that. Allow ' s take an appearance at these journal entries in the initial one. the owner spend cash money as well as equipment so cash money and devices are debited resources is attributed,. in the January twenty first journal access we bought office materials on credit scores we
. debit workplace materials and we debit AP or accounts payable.The 3rd scenario on January twenty. 5th is we received cash money executed so we can credit modeling services income its ok. if you put revenue as well as we debit money, and on January thirtieth we received money in advance. for redesigning services that we are mosting likely to perform in the future we debit cash as well as. If you stated unearned profits that ' s ok make, we attribute unearned makeover services earnings. sure it says unearned though which ' s pretty much precisely what you ' re journal entrances should. look like.You with me? Do we have to put that proprietor
spend cash money

or tools. No you. put on ' t need to do the summaries ok you do not need to do the description however I will. tell you one point I desire you to do on the examination.
And this is all typed up as well as easy so. it ' s simple to understand allow me move this up a little
bite I actually desire you when you do. these on the examination its really nice if you draw the line in between these or at the very least whoops I. think I just wrote on that particular see how I drew the line in between those or at the very least leave some. space there, cause some pupils they ' ll simply pack them entirely
as well as it resembles a. large mess and I can ' t tell where one journal entry quits as well as another
begins.So draw a. line through those or leave a couple extra spaces or something makes sense? Now we had.
another and also that is workout 2 seven is that right? Exercise two 7 I will just.
place those up there for you to take a look at. Now bear in mind if you ' re having problem with this.
what my guidance is if you ' re having problem with these. my recommendations is mosting likely to be to do it the chapter one method very first as well as then ask yourself exactly how
do. you make that account decline exactly how do you make that account boost and use that to.
help you construct the journal entrance ok let me give you a 2nd to take a look at these as well as after that.
I ' ll beginning speaking concerning them.Do you want us to such as indent the credit scores? Yes debits. Let me back up a little bit I wish you ' re.
this posting to the t account posting to the ledger when you publish to the t accounts or. post to the ledger you want to go line by line go to cash as well as debit it for seventy five.
hundred most likely to digital photography equipment for thirty 2 five most likely to Madison capital as well as
credit rating. it for forty thousand as well as somebody might claim well exactly how else would certainly you do it? Well some people.
When you understand what I ' m saying dive around you ' ll constantly, like try to do all the cashes at.
miss one you ' ll constantly miss one so simply go line by line ok.So you are right the following.
step would be to take these journal entrances that we ' ve made and also upload them to the't accounts.
. And also after that of program we can figure out the finishing balance of the t account

remedy? Or of the ledger ok and also that ' s why I desire to transition to what were going to speak about. today. We ' re going to speak about something that is new that you put on ' t recognize yet, but that. is called the trial balance allow ' s obtain that'up on the screen. Now this is an instance of. a test equilibrium currently a trial balance is not the same point as an annual report ok the test. balance is something that we prepare it is not component of the monetary declarations what. we do though is we prepare it before we do the monetary statements, due to the fact that it helps. us prepare the monetary declarations.
The trial equilibrium is something that.
What the equilibrium is all right? Currently there is an order that. we put things in a test balance.
We put the assets initially after that we placed the obligations,.

We put the equity accounts, then we put profits, after that we placed expenditure. Okay, there. will never ever before, ever, ever before be an and also or minus check in the trial equilibrium. Okay, whatever. balance it has that is which column you place it in. and after that the essential point is that the. total debits
need to equate to the total credit reports. They must, they must, they must. Okay, the. overall debits have to equal the complete credit scores. What if they don ' t equal? If they, what. put on ' t equivalent? Then you did glitch. When I was in public accounting back in, currently. ninety two, the very first point they ask for is the test balance.And a great deal of times they. would certainly give me a trial balance that would certainly not stabilize. Total debits do not equal total credit scores,. as well as I would need to give it back to my client and also claim “I require one that balances” all right. Now. I hardly ever before obtain a trial balance that doesn ' t equilibrium when I consult. Why do you think,. what ' s the adjustment considering that ninety 2? Did individuals just get smarter? Why do every one of my trial equilibriums. “- they do every little thing on a computer. In the old days when people were doing everything. theoretically like you are now, individuals would and in some cases would make credit report sheets that didn ' t. equilibrium. Where the total debits didn ' t equal the overall credit ratings. Currently when you are on a computer,. it will not let you go into the journal entry if it does not balance.It will simply claim no.currently even if they are test equilibrium, going back to this test equilibrium; I told you that
if this doesn'' t equilibrium, I ensured that it ' s incorrect.
If it does balance is it a guarantee that everything is right? No regrettably it doesn'' t work this way.
Yet you know if it doesn ' t balance its wrong. Okay, so that is a trial equilibrium that aids us prepares the monetary statement. And naturally what order do we prepare the financial declarations? The revenue statement, then statement of equity, as well as then balance sheet and also all the equilibriums that you see on right here would certainly simply be the finishing equilibrium on December thirty a couple of thousand eleven the finishing balance of those accounts does that make sense? Inquiries on that? Now what I intend to do now is I wish to return over to exercise two 7, as well as we are going to do in class and also for you people in the house I desire you to do it in the house we are mosting likely to do work out two factor 8 and what does work out two factor 8 tell us? Exercise tells us to make use of the info of exercise 2 point 7 to prepare an august thirty one trial equilibrium for this company.Begin by opening up these accounts cash, workplace materials, pre paid insurance,
and so forth. Blog posts the general entries to these t accounts and also that will function as a ledger and afterwards prepare a path balance are you with me? Currently if you most likely to exercise 2 8 in your job documents it need to resemble this they ' ve given you the t'accounts right? Use those it states exercise 2 eight right there and also after that they even give you a spot listed below to do
your equilibrium sheet. Now I ' m not mosting likely to direct that out on every'job paper I ' m just trying to obtain you in the behavior of operating in your job papers. So let ' s work on workout two'point 8 now open up your t accounts upload your journal entrances to the t account or to the ledger and after that prepare a trial equilibrium as that trendy JCCC songs plays. (songs 30:45 -41:15) ok we are back if you'' re refrained folks at
home just stop it press paly when your done now we started with these journal access that are revealed on the screen.What I desire you to do now as I asked is we decreased as well as we mosted likely to cash and
we debit it for seventy five hundred went to photography tools debit it for thirty 2 five and more we went line by line. Well when you ' re performed with that you must have some t accounts that resemble this now what I did was I needed to determine the ending equilibrium for every account. Now for the majority of These accounts it was pretty simple there was only one journal entrance? Yes office supplies the ending balance was fourteen hundred pre paid insurance coverage the ending equilibrium was three thousand and more. I highlighted in yellow the finishing balance.
Now generally that ' s not going to be the situation normally there mosting likely to have during a period multiple journal access to it, and also we ' re going to have to find out the finishing equilibrium wont we? Now you can see I computed the ending equilibrium of money now I intend to make certain the you understand just how to compute the ending balance of a t account all I did below was include the debit subtract the credit scores as well as add equivalent to forty 8 seventy five.So seventy five hundred plus twenty six fifty minus 3 thousand minus fourteen hundred minus 8 seventy five equal four 8 7 5. Might cash now cash is a normal balance account might it ever be a credit rating equilibrium account? It can that would be abnormal yet that would be like if you were overdrawn in your cash money account wouldn ' t
it? , if that were the case you would have the number created Over right here
and as well as would would certainly that number in the credit credit scores on a trial balance that
' s not usually mosting likely to be the case.We have a typical debit balance in this'situation a forty eight seventy five.

What were mosting likely to in these ending balances after that is where mosting likely to put them in your trial equilibrium. Article for choices test equilibrium this is not a monetary statement it ' s what we ' re preparing to aid us do the economic statements. Never any type of plus or minus indications here wear ' t put plus or minuses, since they ' re.
right, as well as those numbers much better be equal right? Oh I wear ' t really care I wear ' t treatment. concerning the dollar signs but placed these in the debit column as well as placed these'in your debt. column, however what I was saying regarding cash money if you were overdrawn let ' s state you were overdrawn. by one hundred bucks
in your money account so it had a credit rating balance an unusual credit scores. Balance you would place one hundred right below you wouldn ' t placed negative one hundred. right here, you ' d placed
positive one hundred right below there ' s no minus indicators on here yet in.

What order do you put them in once again. Now I desire to make certain that. Is there any type of inquiries.
If it ' s a normal debt balance account then would you accumulate the credit scores.
and also deduct the debit. Yes that ' s wonderful thanks for asking that what Allie asked if it ' s. a credit history equilibrium account do you include the credit scores and subtract the debits of course if it ' s a debit.
Alright copy that homework down genuine quick exercise 2 nine, workout 2 10, as well as you likewise claim. Ok put on ' t leave. I desire you to do the t account hand out as well as that looks like
look in your lessons tab.Under the distribute for phase two however this will certainly offer you some. method in identifying the ending balance of t accounts. So I want you to do this hand. out for next duration as well as do work out two nine and work out 2 10. Are most of us great to go? Start researching for that examination alright, well see you following time

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