1:48 Non Operating Expense (aka not daily revenue generation activity) 1) Interest expense 2) Income tax expense Refer to operating activities in statement of cashflow so it makes sense
Your videos have been phenomenal. You do such a good job of breaking everything down and making it understandable. Thank you for the time you dedicate to these videos!
From this lesson i went all the way back to the first lesson to give you thumbs up 👍 for all the lessons. As you said 😅😄,, thanks prof, you are awesome 👏
hey Tony!! have subscribed to your website!!! amazing videos! helps clarify the accounting calculations and principles in details. i still have trouble with double entry and have to practise more!!! i hail all the way from London,England
Oh my God and that's why they say on an earnings call "top line beat" or "bottom line beat" they're talking about revenues or net income beating analyst expectations!!! It makes so much sense... Everything is coming together lol😂
I think the reason is because the amount of retained earnings on the adjusted TB is given for the beginning of the fiscal year. Does that answer your question?
Unearned revenues are liabilities - when we are paid before we do any work, it's unearned revenue - so if you think about it, it's not a revenue at all, you OWE somebody a product or service - hence it's a liability. Check my video FA13 for an explanation.
Not usually - they can be used to compute Cost of Goods Sold, which IS on the income statement - but generally closing inventory is on the balance sheet. (However, Opening Inventory + Purchases - Ending Inventory = COGS, and COGS is on the income statement).
Unearned Revenues (also called "Deferred revenues") happen when a customer pays us, but we haven't done any work (yet). So DR Cash, CR Unearned Revenues. Even though it has the name revenues, we haven't earned them yet, we OWE our customer - we don't owe them money, we owe them a service. (Take a look at my module on adjusting journal entries for a full description!)
You are correct! Great catch - most people miss that! This error needs to be corrected in future versions of the workbook - you should still be able to do a closing entry, but the trial balance does NOT work unfortunately....
The way I think of it is - at the end of the year, if the company has made a profit (ie a positive net income), they can either: Keep the profits in the company, or take the profits out of the company. If you take the profits out, it's called taking a dividend. If you keep the profits in the company it goes to retained earnings. (And think of the meaning of the words, Retained means KEEP, earnings means PROFITS. So it's the account to track the amount of past profits you've kept in the company.)
Excellent presentation, I hope though that your relieved expressions on your trial balance are not genuine but just a humble joke. I am dying trying to learn this topic.
So glad I found these videos when I did. Was drowning in my accounting course, but now I've just aced my midterm!
I just love watching your videos even though I'm an accountant already but it's just refreshing my mind
1:48 Non Operating Expense (aka not daily revenue generation activity)
1) Interest expense
2) Income tax expense
Refer to operating activities in statement of cashflow so it makes sense
These videos are the best!! Super easy to follow along and giving me confidence each day towards becoming a CPA
Professor, you did a good job. Your presentation is very clear. Thanks very much.
Your videos have been phenomenal. You do such a good job of breaking everything down and making it understandable. Thank you for the time you dedicate to these videos!
I learned so much since I started FA1. Thank you so much!
Detailed financial statements? More like "delightful, educational refreshment!" I'm thirsty for knowledge, so keep these videos flowing!
From this lesson i went all the way back to the first lesson to give you thumbs up 👍 for all the lessons. As you said 😅😄,, thanks prof, you are awesome 👏
The ending LMAO I know that feeling 😅You are awesome! Thank youuuuuuu for sharing your knowledge 🙏🏽❤
I have nothing else to say but thank you so much for what you do
hey Tony!! have subscribed to your website!!! amazing videos! helps clarify the accounting calculations and principles in details. i still have trouble with double entry and have to practise more!!! i hail all the way from London,England
Thank you so much!
Thank you! You are LITERALLY life saver
Oh my God and that's why they say on an earnings call "top line beat" or "bottom line beat" they're talking about revenues or net income beating analyst expectations!!! It makes so much sense... Everything is coming together lol😂
Thank you for providing clarity!
Such a great teacher, even me a kid understands lol
For a moment I wished that you would do an income tax playlist, but then I remembered you are in Canada. 😊
Very useful! Thank you professor Bell❤❤
You are the best 🙏🙏🙏🙏🙏🙏🙏
Hi,Tony.Why is the amount of money of Retained Earnings of July 30,2023 is the same as the money on adjusted TB?
I think the reason is because the amount of retained earnings on the adjusted TB is given for the beginning of the fiscal year. Does that answer your question?
When performing the income statement, why didn't we add unearned security revenue under the revenue section?????
Unearned revenues are liabilities - when we are paid before we do any work, it's unearned revenue - so if you think about it, it's not a revenue at all, you OWE somebody a product or service - hence it's a liability. Check my video FA13 for an explanation.
@@Tony-Bell thanks for that.
Hi Tony, May I ask if the opening inventory and closing inventories are recorded in the Income statement?
Not usually - they can be used to compute Cost of Goods Sold, which IS on the income statement - but generally closing inventory is on the balance sheet. (However, Opening Inventory + Purchases - Ending Inventory = COGS, and COGS is on the income statement).
@@Tony-Bell Thanks so much, appreciate this.
Hi Sir, Why did you write unearned revenues to the liabilities section? Can you tell me the logic of this?
Unearned Revenues (also called "Deferred revenues") happen when a customer pays us, but we haven't done any work (yet). So DR Cash, CR Unearned Revenues.
Even though it has the name revenues, we haven't earned them yet, we OWE our customer - we don't owe them money, we owe them a service. (Take a look at my module on adjusting journal entries for a full description!)
@@Tony-Bell Thank you for your clarification, now I understand better.
why do we write interest expense, operating income and tax expense on credit side, arent expense supposed to be on debit side
The columns here are not debit and credit columns.
I watched almost 17 of your fantastic video's, but i'm asking myself: what software are you using?
I use OneNote to write on the screen and OBS to record the screen.
sooooo..... i was doing exercise 3-4A closing entries exercise, and the balances do NOT balance. One side is off by $1000.....
You are correct! Great catch - most people miss that!
This error needs to be corrected in future versions of the workbook - you should still be able to do a closing entry, but the trial balance does NOT work unfortunately....
Thank God! I was working on it for an hour😂 recalculating and I couldn't find it, so I thought I'd check the numbers
This was my work computer (I was doing as much as I could from your videos and workbook) when I had extra time at work. I can't thank you enough
Why is that net income added to retained earnings?
The way I think of it is - at the end of the year, if the company has made a profit (ie a positive net income), they can either: Keep the profits in the company, or take the profits out of the company. If you take the profits out, it's called taking a dividend. If you keep the profits in the company it goes to retained earnings. (And think of the meaning of the words, Retained means KEEP, earnings means PROFITS. So it's the account to track the amount of past profits you've kept in the company.)
Excellent presentation, I hope though that your relieved expressions on your trial balance are not genuine but just a humble joke. I am dying trying to learn this topic.
Thanks! I’m only Half joking! - sometimes I transpose a number or make a mistake in my calculator! Happens to everyone 😅
Thnk u so much sir
aren't you missing unearned security revenue?
Nope! On the balance sheet at 15:30 ! It's a liability.