Accounting Cycle for a Merchandising Business - Part 1

What is the Accounting Cycle in a Merchandising Business?

Written by Jason Gordon

Updated at April 7th, 2022

+ More

What is the Accounting Cycle in a Merchandising Business?

Back to: Accounting & Taxation

0:00:00.960,0:00:05.200

Hey everyone. Welcome to

0:00:03.199,0:00:06.720

chapter four's example and in this

0:00:05.200,0:00:08.720

example we are going to be dealing with

0:00:06.720,0:00:11.280

the entire accounting cycle

0:00:08.720,0:00:13.120

but doing it from a retail stores

0:00:11.280,0:00:14.639

perspective looking at inventory and how

0:00:13.120,0:00:15.360

all those special things dealing with

0:00:14.639,0:00:18.480

inventory

0:00:15.360,0:00:20.160

work in journal entries and t tables,

0:00:18.480,0:00:22.240

as well as doing the adjustments and

0:00:20.160,0:00:23.359

doing the financial statements and doing

0:00:22.240,0:00:25.840

the closings

0:00:23.359,0:00:26.960

as well, so this is I think I believe a

0:00:25.840,0:00:29.920

three-part

0:00:26.960,0:00:31.599

video series on this this example. I

0:00:29.920,0:00:32.880

would highly suggest you to take a

0:00:31.599,0:00:34.239

minute pause

0:00:32.880,0:00:35.680

uh and see if you can do this on your

0:00:34.239,0:00:37.120

own this is a great way to see kind of

0:00:35.680,0:00:38.480

where you're at, I'm a firm believer if

0:00:37.120,0:00:40.559

you need to know what you don't know

0:00:38.480,0:00:41.920

and what you do know and the best way to

0:00:40.559,0:00:43.200

do that is to actually do this on your

0:00:41.920,0:00:44.960

own to figure out what you do and don't

0:00:43.200,0:00:46.239

know, and then come back and watch the

0:00:44.960,0:00:47.600

video to

0:00:46.239,0:00:49.440

see what you got right what you got

0:00:47.600,0:00:50.879

wrong and why you got it wrong so if you

0:00:49.440,0:00:52.800

haven't done it yet please pause it and

0:00:50.879,0:00:54.160

do it, I know it's lengthy I know it gets

0:00:52.800,0:00:55.840

there but it I promise you it'll help

0:00:54.160,0:00:57.199

you out in the long run.

0:00:55.840,0:00:58.719

So for those who are watching this for

0:00:57.199,0:01:00.640

the answer portion of it let's get to it,

0:00:58.719,0:01:03.520

it says charlie company open their doors

0:01:00.640,0:01:05.439

on january 1st of 2000 whatever

0:01:03.520,0:01:07.119

with the intentions of selling widgets

0:01:05.439,0:01:08.720

to customers in their area

0:01:07.119,0:01:10.320

the following events occurred during the

0:01:08.720,0:01:12.080

first year of operations complete the

0:01:10.320,0:01:13.600

accounting cycle for year one for

0:01:12.080,0:01:17.040

charlie company.

0:01:13.600,0:01:18.880

So january 1st charlie acquired 35 000

0:01:17.040,0:01:20.320

cash in exchange for common stock, this

0:01:18.880,0:01:22.479

one should be a no-brainer

0:01:20.320,0:01:24.240

uh we've done this one quite a bit but

0:01:22.479,0:01:25.600

we are going to debit cash because we

0:01:24.240,0:01:26.960

are getting cash remember I like to

0:01:25.600,0:01:30.479

start with cash,

0:01:26.960,0:01:33.840

uh so it's going to be 1 1 cash

0:01:30.479,0:01:35.680

of 35 000 and we are going to credit

0:01:33.840,0:01:37.280

common stock,

0:01:35.680,0:01:38.840

again straightforward we've been doing

0:01:37.280,0:01:42.320

this one from the very beginning,

0:01:38.840,0:01:43.360

so uh also we need to put that into our

0:01:42.320,0:01:47.600

t tables there's our t

0:01:43.360,0:01:50.399

tables cash and common stock t tables,

0:01:47.600,0:01:51.840

1 2 or january 2nd charlie company

0:01:50.399,0:01:53.119

purchase widgets which again are

0:01:51.840,0:01:55.600

inventory

0:01:53.119,0:01:56.799

from a supplier for ten thousand dollars,

0:01:55.600,0:01:57.920

now it doesn't say cash but we can

0:01:56.799,0:01:59.680

assume cash because it doesn't say

0:01:57.920,0:02:03.040

anything else but on account.

0:01:59.680,0:02:05.200

So again one two uh

0:02:03.040,0:02:06.079

but what is my cash doing or is cash

0:02:05.200,0:02:08.080

affected here

0:02:06.079,0:02:09.599

yes it is affected what is my cash doing

0:02:08.080,0:02:10.720

what's going down because we bought

0:02:09.599,0:02:14.319

these with cash,

0:02:10.720,0:02:15.840

so I'm going to credit cash for 10 000

0:02:14.319,0:02:17.920

and then what is my debiting account,

0:02:15.840,0:02:18.400

well I'm getting inventory so I'm going

0:02:17.920,0:02:22.560

0:02:18.400,0:02:23.920

debit my inventory by 10 000 as well,

0:02:22.560,0:02:25.520

and then I'm going to put those into the

0:02:23.920,0:02:27.040

t tables I already got cash and create

0:02:25.520,0:02:28.640

an inventory t table.

0:02:27.040,0:02:30.480

Cash again typically is going to be your

0:02:28.640,0:02:31.840

longer t table inventory is going to be

0:02:30.480,0:02:33.280

right up there with it it's pretty

0:02:31.840,0:02:35.680

pretty lengthy too,

0:02:33.280,0:02:37.840

so just give yourself some room. All

0:02:35.680,0:02:40.879

right. Let's look at january 3rd

0:02:37.840,0:02:43.120

uh the purchase made on january 2nd

0:02:40.879,0:02:45.280

had shipping terms of fob shipping point

0:02:43.120,0:02:46.879

and the responsible party paid 250

0:02:45.280,0:02:49.440

cash, so in this one we need to know one

0:02:46.879,0:02:51.840

who's the responsible party.

0:02:49.440,0:02:53.280

And so fob shipping point if you

0:02:51.840,0:02:55.200

remember when we talked about this that

0:02:53.280,0:02:57.519

is the buyer's responsibility

0:02:55.200,0:02:59.680

because remember the buyer assumes

0:02:57.519,0:03:01.599

responsibility or assumes liability

0:02:59.680,0:03:02.720

from the point of shipment all the way

0:03:01.599,0:03:04.159

through transportation

0:03:02.720,0:03:05.760

to the destination, so this is the

0:03:04.159,0:03:07.280

buyer's responsibility

0:03:05.760,0:03:09.120

we are the buyer because remember we are

0:03:07.280,0:03:10.319

the ones that bought the inventory to be

0:03:09.120,0:03:12.400

shipped to us,

0:03:10.319,0:03:14.159

so therefore if it's the buyer's

0:03:12.400,0:03:15.519

responsibility and we are the buyer then

0:03:14.159,0:03:17.760

we're the ones paying it so

0:03:15.519,0:03:19.519

what is our cash or is cash affected yes

0:03:17.760,0:03:22.159

our cash is being affected

0:03:19.519,0:03:24.480

it's going down so I'm going to say 1-3

0:03:22.159,0:03:25.920

credit cash for 250,

0:03:24.480,0:03:27.280

and because we're the buyer and we're

0:03:25.920,0:03:28.879

getting the inventory we haven't sold

0:03:27.280,0:03:30.720

the inventory yet

0:03:28.879,0:03:32.879

but we're bringing it to our facility in

0:03:30.720,0:03:34.640

order to sell it we're going to include

0:03:32.879,0:03:37.280

this into the inventory

0:03:34.640,0:03:37.840

cost so I'm going to debit inventory

0:03:37.280,0:03:41.120

again

0:03:37.840,0:03:41.760

for 250. Had this said the purchase made

0:03:41.120,0:03:44.959

0:03:41.760,0:03:46.959

january 2nd then the shipping terms were

0:03:44.959,0:03:49.760

fob destination and the responsible

0:03:46.959,0:03:51.519

party uh paid 250,

0:03:49.760,0:03:53.040

we are the buyer destination is a

0:03:51.519,0:03:54.400

seller's responsibility we would not

0:03:53.040,0:03:56.879

have paid so you would have not

0:03:54.400,0:03:58.799

seen a journal entry for that had it

0:03:56.879,0:04:00.560

said fob destination

0:03:58.799,0:04:02.400

but because it says fob shipping point

0:04:00.560,0:04:04.319

it is our responsibility

0:04:02.400,0:04:06.159

also I need to put that into our t

0:04:04.319,0:04:09.360

tables as well

0:04:06.159,0:04:10.480

so there you go. All right. Let's look at

0:04:09.360,0:04:13.280

february 10th

0:04:10.480,0:04:15.360

charlie company sold widgets that cost

0:04:13.280,0:04:17.199

five thousand dollars to a customer

0:04:15.360,0:04:18.400

at a price of ten thousand so a couple

0:04:17.199,0:04:20.560

things going on here

0:04:18.400,0:04:22.160

we sold these at a you know our sticker

0:04:20.560,0:04:23.680

price is ten thousand dollars

0:04:22.160,0:04:25.680

these things that we sold these widgets

0:04:23.680,0:04:26.400

that we sold cost us five thousand

0:04:25.680,0:04:28.400

dollars

0:04:26.400,0:04:30.160

so we need to do our journal entry for

0:04:28.400,0:04:32.080

this, remember it's selling inventory so

0:04:30.160,0:04:34.160

it's a two-part journal entry.

0:04:32.080,0:04:36.400

So first things first is cash

0:04:34.160,0:04:37.759

affected yes our cash is affected so I'm

0:04:36.400,0:04:38.320

going to start with that our cash is

0:04:37.759,0:04:40.560

going up

0:04:38.320,0:04:41.840

because our customers paid for it so

0:04:40.560,0:04:43.199

cash and we're going to put the

0:04:41.840,0:04:44.400

hopefully higher amount you definitely

0:04:43.199,0:04:46.960

don't want the lower amount to go in

0:04:44.400,0:04:49.919

cash because that's a bad business plan.

0:04:46.960,0:04:50.560

So cash of ten thousand the counterpart

0:04:49.919,0:04:52.320

to cash

0:04:50.560,0:04:53.600

is well we earn this ten thousand so

0:04:52.320,0:04:54.400

what do we do with the things we earn

0:04:53.600,0:04:56.639

will we

0:04:54.400,0:04:57.680

report them as revenue and so we're

0:04:56.639,0:04:59.680

going to call it

0:04:57.680,0:05:01.680

credit sales revenue for the same 10000,

0:04:59.680,0:05:02.720

now that's half of it now I need to

0:05:01.680,0:05:04.720

do the other half

0:05:02.720,0:05:06.960

because we also used the information the

0:05:04.720,0:05:08.320

inventory and lost the inventory

0:05:06.960,0:05:10.000

we sold it and therefore we don't have

0:05:08.320,0:05:12.000

it anymore. So we're

0:05:10.000,0:05:13.120

going to expense our inventory through

0:05:12.000,0:05:14.800

cost of goods sold,

0:05:13.120,0:05:16.479

so we're going to debit that account

0:05:14.800,0:05:18.880

cost of goods sold for the lower amount

0:05:16.479,0:05:21.280

which is five thousand dollars,

0:05:18.880,0:05:22.880

and then also credit inventory because

0:05:21.280,0:05:25.120

we're lowering our inventory account by

0:05:22.880,0:05:27.440

five thousand dollars

0:05:25.120,0:05:28.800

and then need to create some t tables

0:05:27.440,0:05:29.360

add two t tables, so we're going to get

0:05:28.800,0:05:32.240

rid of

0:05:29.360,0:05:33.759

uh or start with uh sales revenue and

0:05:32.240,0:05:35.280

cogs and then also add to the

0:05:33.759,0:05:37.520

existing two tables of cash and

0:05:35.280,0:05:38.000

inventory. Now I do want to make it a

0:05:37.520,0:05:41.440

point

0:05:38.000,0:05:42.080

for you to know that the difference

0:05:41.440,0:05:43.680

between

0:05:42.080,0:05:45.120

these two what we sold it for and what

0:05:43.680,0:05:45.600

it cost us, the ten thousand five

0:05:45.120,0:05:47.039

thousand

0:05:45.600,0:05:49.440

that five thousand granted I know it's

0:05:47.039,0:05:51.120

five thousand but that five thousand is

0:05:49.440,0:05:52.560

not recorded in the

0:05:51.120,0:05:54.720

journal entries or t tables, that's our

0:05:52.560,0:05:55.280

gross profit that's something that

0:05:54.720,0:05:56.960

you're going to be

0:05:55.280,0:05:58.400

it's going to be found in the financial

0:05:56.960,0:05:59.919

statements, so

0:05:58.400,0:06:01.680

you'll never take the difference of

0:05:59.919,0:06:03.600

these two numbers to put into

0:06:01.680,0:06:05.440

the journal entries you will find that

0:06:03.600,0:06:06.000

later on when we get to the financial

0:06:05.440,0:06:10.479

statements,

0:06:06.000,0:06:12.400

so all right. Let's go to february 15th

0:06:10.479,0:06:13.680

it says charlie company paid five

0:06:12.400,0:06:15.680

thousand dollars cash

0:06:13.680,0:06:17.039

uh for land they planned to use as a

0:06:15.680,0:06:19.520

future store,

0:06:17.039,0:06:20.319

so has cash been affected or is cash

0:06:19.520,0:06:23.440

being affected

0:06:20.319,0:06:25.600

yes it is what is our cash doing it is

0:06:23.440,0:06:27.840

going down because we purchased the land,

0:06:25.600,0:06:29.759

so we're going to say 215

0:06:27.840,0:06:31.039

credit cash because it's going down for

0:06:29.759,0:06:32.880

5 000

0:06:31.039,0:06:35.039

and then what are we going to debit will

0:06:32.880,0:06:37.360

we purchased land so we got that asset

0:06:35.039,0:06:38.560

and so we're going to debit it land of

0:06:37.360,0:06:40.639

5000

0:06:38.560,0:06:42.400

and I'm going to create a land t table

0:06:40.639,0:06:46.479

and also put the 5 000

0:06:42.400,0:06:50.080

into cash. All right, so that is 215.

0:06:46.479,0:06:51.599

Now let's look at 315. Charlie company

0:06:50.080,0:06:53.440

purchased 15 000

0:06:51.599,0:06:55.039

of widgets on account the terms of the

0:06:53.440,0:06:58.160

purchase were

0:06:55.039,0:06:59.919

215 net 30, so not only do we purchase

0:06:58.160,0:07:00.400

it we purchase it on account and they're

0:06:59.919,0:07:02.080

offering

0:07:00.400,0:07:03.919

us some credit terms that says if you

0:07:02.080,0:07:04.880

pay quicker we'll give you a two percent

0:07:03.919,0:07:06.000

discount,

0:07:04.880,0:07:07.840

we don't care about the discount right

0:07:06.000,0:07:09.599

now all we care about is we got the

0:07:07.840,0:07:10.960

inventory we purchased the inventory, so

0:07:09.599,0:07:13.199

let's do that.

0:07:10.960,0:07:14.880

First things first is, is cash

0:07:13.199,0:07:16.400

affected

0:07:14.880,0:07:18.560

cash is not affected here because it

0:07:16.400,0:07:21.599

says on account so what are we

0:07:18.560,0:07:23.840

expected to do with the

0:07:21.599,0:07:25.759

uh cash well eventually we're expected

0:07:23.840,0:07:26.639

to pay it so therefore it is an accounts

0:07:25.759,0:07:28.479

payable

0:07:26.639,0:07:30.880

and if remember accounts payable is a

0:07:28.479,0:07:33.280

minus plus and so it would go on the

0:07:30.880,0:07:36.800

credit side so we would say 315

0:07:33.280,0:07:38.560

accounts payable of 15 000.

0:07:36.800,0:07:40.080

All right. That takes care of that and

0:07:38.560,0:07:42.240

what is our debit going to be what do we

0:07:40.080,0:07:45.039

get we got inventory so we're going to

0:07:42.240,0:07:47.120

debit inventory for that 15 000.

0:07:45.039,0:07:48.639

Now notice the discounts didn't come in

0:07:47.120,0:07:49.840

play yet there because

0:07:48.639,0:07:51.599

remember we don't know what the

0:07:49.840,0:07:54.080

discounts are until we actually pay it

0:07:51.599,0:07:55.759

like when what date do we pay it,

0:07:54.080,0:07:58.000

but if you look at the terms it says 210

0:07:55.759,0:07:59.840

net 30 and just to kind of review the

0:07:58.000,0:08:01.039

first one is the discount so

0:07:59.840,0:08:02.879

they're offering us a two percent

0:08:01.039,0:08:05.360

discount on

0:08:02.879,0:08:07.360

whatever we pay off of our accounts

0:08:05.360,0:08:09.840

payable within 15 days but we have to

0:08:07.360,0:08:11.440

pay the entire thing off in 30 days,

0:08:09.840,0:08:14.800

so that's just what that means. All right.

0:08:11.440,0:08:17.599

Let's look at 318,

0:08:14.800,0:08:18.639

uh 318 says oh excuse me we need to put

0:08:17.599,0:08:20.400

those in two tables

0:08:18.639,0:08:21.919

just forget about that. All right. There

0:08:20.400,0:08:24.319

we go now we got it,

0:08:21.919,0:08:25.039

all right, 318 says charlie company

0:08:24.319,0:08:26.319

returned

0:08:25.039,0:08:28.400

thousand dollars worth of widgets

0:08:26.319,0:08:31.039

purchased on 315

0:08:28.400,0:08:32.399

because of defects so we purchased

0:08:31.039,0:08:34.560

fifteen thousand

0:08:32.399,0:08:36.080

but two thousand of them had some issues

0:08:34.560,0:08:38.080

so we returned them,

0:08:36.080,0:08:39.760

so we need to do a journal entry for

0:08:38.080,0:08:42.080

that return and remember

0:08:39.760,0:08:43.519

returning of a purchase is simply the

0:08:42.080,0:08:46.720

opposite of the original

0:08:43.519,0:08:47.760

so the original is inventory ap so for

0:08:46.720,0:08:48.959

us to do the journal entry for the

0:08:47.760,0:08:50.480

return it's going to be the opposite

0:08:48.959,0:08:53.680

which is going to be ap

0:08:50.480,0:08:56.880

of 2000 and inventory of 2000,

0:08:53.680,0:08:57.920

so I just flipped them, put that in my t

0:08:56.880,0:09:00.880

tables

0:08:57.920,0:09:03.839

there we go all right so we're done with

0:09:00.880,0:09:06.080

318. Now let's look at 328.

0:09:03.839,0:09:07.360

Charlie company paid the balance due on

0:09:06.080,0:09:10.560

accounts payable, now that's

0:09:07.360,0:09:12.160

28 we originally did this on 3 15,

0:09:10.560,0:09:13.680

so if you count that out that's less

0:09:12.160,0:09:15.360

than 15 days

0:09:13.680,0:09:18.240

15 days would have been put it right at

0:09:15.360,0:09:21.440

3 31,

0:09:18.240,0:09:22.880

so we are within the discounted period

0:09:21.440,0:09:24.160

which means we're getting the two

0:09:22.880,0:09:27.440

percent discount.

0:09:24.160,0:09:28.720

Okay. So let's go through this we're

0:09:27.440,0:09:30.160

going to take it step by step so I can

0:09:28.720,0:09:32.160

show you kind of how I logically put it

0:09:30.160,0:09:34.399

together to make make sense to me

0:09:32.160,0:09:36.080

and that way I hopefully not read

0:09:34.399,0:09:39.279

hopefully not forget it.

0:09:36.080,0:09:41.279

All right. So I'm paying this off

0:09:39.279,0:09:42.560

and by paying this off by paying off my

0:09:41.279,0:09:44.320

balance I'm

0:09:42.560,0:09:45.360

getting rid of my ap, so the first thing

0:09:44.320,0:09:46.480

I'm going to do is I'm going to get rid

0:09:45.360,0:09:48.399

of my ap,

0:09:46.480,0:09:50.000

now how much am I paying off of my ap?

0:09:48.399,0:09:51.920

Well I had fifteen thousand

0:09:50.000,0:09:53.519

I took back twelve thousand excuse me

0:09:51.920,0:09:54.560

two thousand please don't forget about

0:09:53.519,0:09:55.920

return

0:09:54.560,0:09:57.680

I took back two thousand that means my

0:09:55.920,0:09:59.279

ap balance right now is thirteen

0:09:57.680,0:10:01.519

thousand so that's what I'm getting rid

0:09:59.279,0:10:03.920

of, so I'll say 328

0:10:01.519,0:10:05.839

accounts payable because again it on the

0:10:03.920,0:10:08.800

debit is going to make go away

0:10:05.839,0:10:10.480

13 000, okay, that's part of it. Now how am

0:10:08.800,0:10:13.360

I getting rid of that

0:10:10.480,0:10:16.240

ap well I'm paying cash for it so I

0:10:13.360,0:10:17.519

wanted to credit cash but for how much,

0:10:16.240,0:10:19.760

I'm not going to pay I'm not going to

0:10:17.519,0:10:21.680

pay 13 000 I'm going to pay

0:10:19.760,0:10:23.360

whatever it is minus the discount which

0:10:21.680,0:10:26.600

a 2 discount for 13000

0:10:23.360,0:10:29.519

is going to be uh

0:10:26.600,0:10:32.240

206 there's 260 dollars,

0:10:29.519,0:10:33.279

so if I subtract 260 from 13 000 that's

0:10:32.240,0:10:37.120

going to give me

0:10:33.279,0:10:39.200

a cash that I'm paying of 12 740.

0:10:37.120,0:10:40.959

Now this last piece which is the 260,

0:10:39.200,0:10:42.480

where do I put that? Well

0:10:40.959,0:10:44.480

I have to take it out of my inventory

0:10:42.480,0:10:44.959

because I'm lowering the value or the

0:10:44.480,0:10:46.800

cost

0:10:44.959,0:10:49.360

of what it cost me to obtain that

0:10:46.800,0:10:51.680

inventory, so that inventory is not worth

0:10:49.360,0:10:55.440

3 000 to me anymore it's worth 12

0:10:51.680,0:10:57.680

740, well it's on my books for 13 000 so

0:10:55.440,0:11:00.800

I need to lower it by the 260,

0:10:57.680,0:11:02.640

so I will credit inventory by 260, yes I

0:11:00.800,0:11:04.959

I understand that we're not

0:11:02.640,0:11:06.480

losing physical inventory but we are

0:11:04.959,0:11:07.440

losing value of the inventory and that's

0:11:06.480,0:11:10.320

what we care about in

0:11:07.440,0:11:12.480

inventory in financial accounting. All

0:11:10.320,0:11:14.480

right. So put that in my t tables

0:11:12.480,0:11:15.760

there we go, all right, so that took care

0:11:14.480,0:11:18.560

of that one. Now let's go to

0:11:15.760,0:11:20.480

five four charlie companies sold on

0:11:18.560,0:11:22.079

account widgets with a list price of

0:11:20.480,0:11:22.880

twenty thousand the widgets had a cost

0:11:22.079,0:11:24.880

or had cost

0:11:22.880,0:11:25.920

charlie company ten thousand, the

0:11:24.880,0:11:28.399

shipping terms

0:11:25.920,0:11:30.000

of the sale was fob destination charlie

0:11:28.399,0:11:30.800

company offered a discount to the

0:11:30.000,0:11:33.519

customer and

0:11:30.800,0:11:33.920

on with the terms 110 net 30, we're real

0:11:33.519,0:11:36.160

you know

0:11:33.920,0:11:37.760

generous with our one percent discount

0:11:36.160,0:11:38.959

but let's go through this the the thing

0:11:37.760,0:11:41.040

that I care about right now

0:11:38.959,0:11:42.560

is the fact that I sold some so I need

0:11:41.040,0:11:44.320

to do a journal entry for that.

0:11:42.560,0:11:46.160

And so the first one is is cash being

0:11:44.320,0:11:47.279

affected no cash is not being affected

0:11:46.160,0:11:49.200

here because

0:11:47.279,0:11:50.720

uh it's on account, so what are we

0:11:49.200,0:11:52.880

expected to do with that

0:11:50.720,0:11:54.720

cash at a later date, well we're expected

0:11:52.880,0:11:55.279

to receive it because somebody owes us

0:11:54.720,0:11:57.360

the money,

0:11:55.279,0:11:58.639

so it's an accounts receivable, so I'll

0:11:57.360,0:12:00.480

say five four

0:11:58.639,0:12:02.079

accounts receivable and again for the

0:12:00.480,0:12:03.519

higher amount twenty thousand it better

0:12:02.079,0:12:05.680

be the higher amount

0:12:03.519,0:12:07.360

for twenty thousand. All right. The other

0:12:05.680,0:12:09.200

side or its counterpart is well we

0:12:07.360,0:12:10.560

earned that twenty thousand we actually

0:12:09.200,0:12:12.720

did something for we rendered the

0:12:10.560,0:12:13.839

product uh so that's going to be our

0:12:12.720,0:12:16.320

sales revenue for

0:12:13.839,0:12:17.680

twenty thousand, and I skipped the line

0:12:16.320,0:12:18.480

there's a reason why this this is more

0:12:17.680,0:12:20.160

practical

0:12:18.480,0:12:22.639

uh this is how you would actually see it

0:12:20.160,0:12:24.160

so um again we follow the rules all

0:12:22.639,0:12:25.519

debits go first and all credits come

0:12:24.160,0:12:28.160

later so

0:12:25.519,0:12:30.160

but that's half of it. Now we need to do

0:12:28.160,0:12:32.000

the expense side of it which is the cost

0:12:30.160,0:12:34.000

of goods sold so our cost of goods sold

0:12:32.000,0:12:35.040

is 10 000 that's what we used of our

0:12:34.000,0:12:37.120

inventory,

0:12:35.040,0:12:38.639

so we will debit cost of goods sold for

0:12:37.120,0:12:40.639

ten thousand,

0:12:38.639,0:12:42.880

and then its counterpart is well we we

0:12:40.639,0:12:44.320

got rid of the inventory we sold it so

0:12:42.880,0:12:46.079

we're going to lower our inventory by

0:12:44.320,0:12:48.880

that ten thousand,

0:12:46.079,0:12:49.279

and so that is our journal entry for the

0:12:48.880,0:12:53.120

0:12:49.279,0:12:56.000

sale for five four. All right,

0:12:53.120,0:12:57.519

Now let's go to five five it says that

0:12:56.000,0:12:58.079

the responsible party paid three hundred

0:12:57.519,0:13:00.160

dollars

0:12:58.079,0:13:01.839

for shipping costs in regards to the

0:13:00.160,0:13:02.959

sale on five four well if we go back up

0:13:01.839,0:13:06.320

to five four

0:13:02.959,0:13:08.720

it says the shipping terms uh were fob

0:13:06.320,0:13:10.560

destination and fob destination is the

0:13:08.720,0:13:12.720

seller's responsibility

0:13:10.560,0:13:15.040

and we are the seller in five four so

0:13:12.720,0:13:16.320

therefore we it is our responsibility we

0:13:15.040,0:13:17.680

are the one paying it

0:13:16.320,0:13:19.680

so we need to do a journal entry for

0:13:17.680,0:13:20.800

that so we would say five four excuse me

0:13:19.680,0:13:22.800

we did not put those

0:13:20.800,0:13:24.639

into yeah we need to put those last ones

0:13:22.800,0:13:25.760

in t table there we go five fours and t

0:13:24.639,0:13:27.519

tables.

0:13:25.760,0:13:30.000

All right. So five five it is our

0:13:27.519,0:13:32.240

responsibility so is cash being affected

0:13:30.000,0:13:34.560

it is is our cash we're having to pay

0:13:32.240,0:13:36.160

for it so our cash is going down by 300,

0:13:34.560,0:13:39.920

so I'll say five five

0:13:36.160,0:13:42.560

credit cash for 300

0:13:39.920,0:13:44.399

and then the debit well I can't put it

0:13:42.560,0:13:46.399

into inventory because I've already sold

0:13:44.399,0:13:48.480

the inventory I have to expense this in

0:13:46.399,0:13:51.519

its own account so I'll just

0:13:48.480,0:13:55.279

call it delivery expense of

0:13:51.519,0:13:56.880

300. All right, so that takes care of

0:13:55.279,0:13:58.880

five five let me put them in my t

0:13:56.880,0:14:01.440

tables there's my delivery expense

0:13:58.880,0:14:04.320

account and then put it into cash

0:14:01.440,0:14:04.720

or take it out of cash if you will. All

0:14:04.320,0:14:07.760

right.

0:14:04.720,0:14:10.480

514 charlie company

0:14:07.760,0:14:11.120

uh or excuse me 500 five nine skip to

0:14:10.480,0:14:13.839

date

0:14:11.120,0:14:14.639

five nine customers from the five for

0:14:13.839,0:14:17.120

sale

0:14:14.639,0:14:19.199

returned two thousand dollars of the

0:14:17.120,0:14:21.839

widgets the widgets cost charlie

0:14:19.199,0:14:23.279

one thousand dollars so of the stuff

0:14:21.839,0:14:24.639

that we sold the twenty thousand dollars

0:14:23.279,0:14:26.320

worth of inventory or twenty thousand

0:14:24.639,0:14:27.519

dollars worth of revenue that we sold on

0:14:26.320,0:14:29.279

five four

0:14:27.519,0:14:30.720

they brought back two thousand of it and

0:14:29.279,0:14:35.360

that 2000 cost us

0:14:30.720,0:14:38.399

a thousand originally. So again this is a

0:14:35.360,0:14:40.800

return we need to do

0:14:38.399,0:14:42.720

the normal which is opposite of the

0:14:40.800,0:14:44.160

original with one minor difference we're

0:14:42.720,0:14:45.199

not going to take it directly out of

0:14:44.160,0:14:46.720

sales revenue

0:14:45.199,0:14:48.320

we're going to put it into a different

0:14:46.720,0:14:49.760

account and then eventually it will

0:14:48.320,0:14:52.000

affect sales revenue

0:14:49.760,0:14:55.279

we're going to call it sales returns, so

0:14:52.000,0:14:57.680

let's do the journal entry for that.

0:14:55.279,0:14:59.199

Five nine again normally we would put

0:14:57.680,0:15:01.040

sales revenue but we're going to put

0:14:59.199,0:15:02.639

sales returns and allowances again this

0:15:01.040,0:15:04.079

gives us a clearer case of kind of

0:15:02.639,0:15:05.600

what's going on

0:15:04.079,0:15:07.600

you know, we sold it we just we brought

0:15:05.600,0:15:09.199

it back we had to bring it back

0:15:07.600,0:15:10.240

uh and its counterpart is going to be

0:15:09.199,0:15:12.480

accounts receivable because we're going

0:15:10.240,0:15:14.160

to take it off of their account for 2000

0:15:12.480,0:15:15.519

and then inventory we're going to debit

0:15:14.160,0:15:16.480

for the 1000 because we're getting it

0:15:15.519,0:15:19.120

back

0:15:16.480,0:15:20.399

and then cogs we're going to credit

0:15:19.120,0:15:21.760

because we're taking it off of our

0:15:20.399,0:15:23.199

expense.

0:15:21.760,0:15:25.279

All right. So that takes care of five

0:15:23.199,0:15:26.720

nine that's the return,

0:15:25.279,0:15:28.959

all right, let's uh we need to put it

0:15:26.720,0:15:30.320

into t tables,

0:15:28.959,0:15:33.360

all right, there we go. Now we've got

0:15:30.320,0:15:34.800

everything going well let's go to 514.

0:15:33.360,0:15:38.480

Charlie company

0:15:34.800,0:15:40.320

uh I guess it says uh obtained

0:15:38.480,0:15:41.920

I should say obtained at nine thousand

0:15:40.320,0:15:45.120

nine hundred dollars cash as a

0:15:41.920,0:15:47.199

uh as yeah it's all out of whack uh

0:15:45.120,0:15:48.399

was received nine thousand has received

0:15:47.199,0:15:49.680

nine thousand nine hundred dollars as a

0:15:48.399,0:15:52.720

partial settlement which has an

0:15:49.680,0:15:56.320

ap I should say ar value of

0:15:52.720,0:15:58.480

uh not a ten thousand for the sale of

0:15:56.320,0:15:59.680

on five four I just completely butchered

0:15:58.480,0:16:01.680

that one what happened there

0:15:59.680,0:16:03.360

but you kind of get the idea the

0:16:01.680,0:16:04.880

customer is paying off ten thousand

0:16:03.360,0:16:06.800

dollars of their ar

0:16:04.880,0:16:08.560

uh by giving us nine thousand nine

0:16:06.800,0:16:10.160

hundred dollars cash, because remember we

0:16:08.560,0:16:12.399

gave them that one percent discount

0:16:10.160,0:16:15.199

remember it's 110 net 30,

0:16:12.399,0:16:17.279

and so we need to uh journalize that. So

0:16:15.199,0:16:18.160

is cash being affected yes cash is being

0:16:17.279,0:16:19.759

affected

0:16:18.160,0:16:21.199

it's going up because they're giving it

0:16:19.759,0:16:21.680

to us so we're going to start with that

0:16:21.199,0:16:25.519

0:16:21.680,0:16:28.560

4 excuse me 514 it's going to be cash

0:16:25.519,0:16:31.680

and 9900.

0:16:28.560,0:16:33.040

Now by giving us that they are also

0:16:31.680,0:16:34.399

getting a discount they got their one

0:16:33.040,0:16:37.040

percent discount

0:16:34.399,0:16:37.519

their a uh excuse me their ar was ten

0:16:37.040,0:16:39.759

thousand

0:16:37.519,0:16:40.560

so one percent off of ten thousand is

0:16:39.759,0:16:42.480

going to be

0:16:40.560,0:16:44.240

100, so I'm going to call that sales

0:16:42.480,0:16:47.040

discount

0:16:44.240,0:16:48.399

100 and then finally my credit is going

0:16:47.040,0:16:52.160

to be

0:16:48.399,0:16:54.399

accounts receivable for 10 000,

0:16:52.160,0:16:56.399

so that takes care of paying off 10 000

0:16:54.399,0:16:58.639

of their account they only paid me

0:16:56.399,0:16:59.839

9900 in cash because they got a 100

0:16:58.639,0:17:02.480

discount so that's

0:16:59.839,0:17:03.279

accounting for all those pieces. I'll put

0:17:02.480,0:17:04.880

that into our t

0:17:03.279,0:17:07.120

tables this is what it looks like we

0:17:04.880,0:17:11.600

have a sales discount t-table there

0:17:07.120,0:17:14.000

all the other stuff ar and uh cash.

0:17:11.600,0:17:16.000

All right. Let's look at six one says

0:17:14.000,0:17:17.520

charlie company receive the remaining

0:17:16.000,0:17:20.559

accounts

0:17:17.520,0:17:23.839

should be your receivable payment uh due

0:17:20.559,0:17:27.679

from the 5-4 sale.

0:17:23.839,0:17:30.160

So yes they originally owed us 20 000

0:17:27.679,0:17:31.120

in ar then they took back 2000 so they

0:17:30.160,0:17:34.400

owed us

0:17:31.120,0:17:36.720

uh 18 000, then they paid off

0:17:34.400,0:17:39.200

10000 of it but they get the discount so

0:17:36.720,0:17:41.360

they still owe us 8 000,

0:17:39.200,0:17:42.720

and because it's after the discount the

0:17:41.360,0:17:44.960

discounted period they get us

0:17:42.720,0:17:46.400

they get no discount whatsoever so

0:17:44.960,0:17:48.640

they're gonna have to pay it in full.

0:17:46.400,0:17:50.640

So is cash being affected yes it's going

0:17:48.640,0:17:51.760

up so cash can be debited

0:17:50.640,0:17:53.280

and it's going to go up by eight

0:17:51.760,0:17:55.039

thousand that completely gets rid of the

0:17:53.280,0:17:58.160

rest of their ar

0:17:55.039,0:17:59.679

and again we're going to credit ar,

0:17:58.160,0:18:03.360

so that same eight thousand put that

0:17:59.679,0:18:07.600

into our t tables.

0:18:03.360,0:18:09.520

Okay. So now we're going to go to 7 15,

0:18:07.600,0:18:10.799

says charlie company paid 3 000 of

0:18:09.520,0:18:12.799

selling an admin expense

0:18:10.799,0:18:14.000

so this one's pretty straightforward 715

0:18:12.799,0:18:16.799

we've got selling an admin

0:18:14.000,0:18:18.000

expense as our debit of 3 000 and

0:18:16.799,0:18:19.039

because it doesn't say anything we're

0:18:18.000,0:18:22.400

assuming cash so

0:18:19.039,0:18:26.320

cash of 3 000 put that into our t

0:18:22.400,0:18:26.320

tables looks like that

0:18:26.720,0:18:33.120

there we go. All right. Let's look at

0:18:30.000,0:18:34.960

uh 831. Charlie company sold the land it

0:18:33.120,0:18:37.280

purchased on 215

0:18:34.960,0:18:39.360

for 7 500, so remember on 215 we

0:18:37.280,0:18:40.880

purchased land for 5 000

0:18:39.360,0:18:42.320

but now and we we thought we were going

0:18:40.880,0:18:44.080

to hold on to it and use it for a future

0:18:42.320,0:18:45.520

story but maybe the values got too good

0:18:44.080,0:18:46.080

and we decided to go ahead and sell it

0:18:45.520,0:18:49.280

and make the

0:18:46.080,0:18:50.400

the difference. So we need to journalize

0:18:49.280,0:18:52.320

that,

0:18:50.400,0:18:54.240

so the first question is is cash

0:18:52.320,0:18:55.919

involved yes cash is involved what is

0:18:54.240,0:18:57.440

our cash doing, well it's going up

0:18:55.919,0:18:58.160

because we sold it somebody gave us that

0:18:57.440,0:19:02.320

cash so

0:18:58.160,0:19:04.080

we're going to say cash debit of 7 500,

0:19:02.320,0:19:05.919

now what do we get rid of, well we got

0:19:04.080,0:19:06.559

rid of the land so we're going to credit

0:19:05.919,0:19:08.000

the land

0:19:06.559,0:19:09.440

but we're only going to credit land for

0:19:08.000,0:19:10.000

what we have it in its t table if you

0:19:09.440,0:19:11.600

look at the land

0:19:10.000,0:19:13.200

t table we only have five thousand in

0:19:11.600,0:19:13.919

there so we can only take five thousand

0:19:13.200,0:19:16.640

out,

0:19:13.919,0:19:18.080

so I'll credit land for five thousand

0:19:16.640,0:19:19.840

but we know that we're off because

0:19:18.080,0:19:21.440

remember our debits and our credits have

0:19:19.840,0:19:21.919

to equal and right now seventy five

0:19:21.440,0:19:24.640

hundred

0:19:21.919,0:19:26.240

and five thousand does not equal so we

0:19:24.640,0:19:27.679

need to come up with something to show

0:19:26.240,0:19:29.520

the difference we know it's going to be

0:19:27.679,0:19:30.799

2 500 on the credit side, so what are we

0:19:29.520,0:19:33.840

going to call that?

0:19:30.799,0:19:36.640

Well this is not a normal revenue

0:19:33.840,0:19:37.440

this is what we call a capital gains

0:19:36.640,0:19:39.600

it's a and

0:19:37.440,0:19:42.000

what we're going to record it as is a

0:19:39.600,0:19:45.440

gain on the sale of land,

0:19:42.000,0:19:47.440

so 2500. Notice it's not sales revenue

0:19:45.440,0:19:49.039

because we're not selling inventory this

0:19:47.440,0:19:52.160

is not our day-to-day business

0:19:49.039,0:19:53.520

if we're a real estate company maybe but

0:19:52.160,0:19:55.799

we're not in the business of selling

0:19:53.520,0:19:58.720

land so this is something that's this

0:19:55.799,0:19:59.919

non-operating this is not normal, uh so

0:19:58.720,0:20:02.159

we're going to call it gain on the sale

0:19:59.919,0:20:04.880

of land.

0:20:02.159,0:20:06.400

All right. That takes care of 8 31. Let's

0:20:04.880,0:20:07.039

go to the next one only got three more

0:20:06.400,0:20:08.480

left.

0:20:07.039,0:20:10.159

Charlie company borrowed ten thousand

0:20:08.480,0:20:12.480

dollars from the bank so

0:20:10.159,0:20:13.280

we probably had to to sign a promise or

0:20:12.480,0:20:14.960

a note

0:20:13.280,0:20:16.640

uh so this is going to be something

0:20:14.960,0:20:17.360

dealing with notes and because we owe

0:20:16.640,0:20:20.400

this

0:20:17.360,0:20:22.720

this is this is a money that we owe this

0:20:20.400,0:20:24.240

is going to be a notes payable, so we're

0:20:22.720,0:20:28.400

going to start with

0:20:24.240,0:20:31.280

uh 9-1 oh sorry there's the t-tables

0:20:28.400,0:20:32.240

forget about that one. 9-1 we're going to

0:20:31.280,0:20:34.240

say cash

0:20:32.240,0:20:35.520

because we are getting cash of ten

0:20:34.240,0:20:36.799

thousand

0:20:35.520,0:20:38.720

uh and then on the other end we're going

0:20:36.799,0:20:40.640

to call it notes payable for the credit

0:20:38.720,0:20:42.559

of ten thousand,

0:20:40.640,0:20:46.720

so our cash goes up our liability goes

0:20:42.559,0:20:49.520

up and here is our t tables.

0:20:46.720,0:20:50.799

All right. The first 12 31 or the first

0:20:49.520,0:20:52.159

adjustment that we have it's not really

0:20:50.799,0:20:53.679

adjustment because we're not this is

0:20:52.159,0:20:55.360

we're actually paying this

0:20:53.679,0:20:58.080

this is not like something is dealing

0:20:55.360,0:21:00.559

with receivables or payables remember

0:20:58.080,0:21:01.520

cash is never in an adjustment into the

0:21:00.559,0:21:03.200

adjustment,

0:21:01.520,0:21:05.120

so this just so happens to be an end of

0:21:03.200,0:21:06.880

the year entry but it says charlie

0:21:05.120,0:21:10.080

company paid 250

0:21:06.880,0:21:11.360

for interest on the notes payable from

0:21:10.080,0:21:14.000

9-1

0:21:11.360,0:21:14.799

and so we're actually paying in cash. So

0:21:14.000,0:21:17.039

is our cash

0:21:14.799,0:21:18.000

affected yes it is what is it doing it

0:21:17.039,0:21:21.280

is going down

0:21:18.000,0:21:23.120

so we will say cash of 250

0:21:21.280,0:21:24.799

is the credit and then what are we going

0:21:23.120,0:21:27.120

to call it as the debit

0:21:24.799,0:21:28.799

it is not going to be notes payable

0:21:27.120,0:21:30.559

because we are not changing the

0:21:28.799,0:21:32.480

principle of the note

0:21:30.559,0:21:34.960

what we're doing is we're this is just

0:21:32.480,0:21:37.039

the interest that we have to pay

0:21:34.960,0:21:38.720

in order to use the note and that's why

0:21:37.039,0:21:40.480

we're going to expenses because this is

0:21:38.720,0:21:41.600

what we have to pay in order to use it,

0:21:40.480,0:21:45.039

so we're going to call it interest

0:21:41.600,0:21:47.600

expense for 250.

0:21:45.039,0:21:48.400

Okay. So that takes care of all of our

0:21:47.600,0:21:52.000

normal

0:21:48.400,0:21:54.880

uh journal entries our you know our year

0:21:52.000,0:21:56.559

annual operations entries. The last

0:21:54.880,0:21:58.000

one says charlie company completed their

0:21:56.559,0:21:59.039

end of the year inventory account and

0:21:58.000,0:22:00.880

found that

0:21:59.039,0:22:04.480

they had eight thousand eight hundred

0:22:00.880,0:22:07.039

and ninety dollars of inventory on hand.

0:22:04.480,0:22:10.240

So this is actually one this is the only

0:22:07.039,0:22:13.679

uh adjustment that we're going to have,

0:22:10.240,0:22:15.039

and so normally we would do a unadjusted

0:22:13.679,0:22:16.400

trial balance but because there's only

0:22:15.039,0:22:18.320

one

0:22:16.400,0:22:20.559

adjusting entry we're just going to do a

0:22:18.320,0:22:24.080

post adjusting or an

0:22:20.559,0:22:26.720

adjusted trial balance but

0:22:24.080,0:22:28.960

let's figure this out. So it says that we

0:22:26.720,0:22:29.679

have right now on our shelves eight

0:22:28.960,0:22:31.280

thousand

0:22:29.679,0:22:33.120

eight hundred and ninety dollars worth

0:22:31.280,0:22:35.039

of inventory, we need to go through and

0:22:33.120,0:22:37.200

figure out what we have in inventory

0:22:35.039,0:22:38.720

on our books, so if we add up all the

0:22:37.200,0:22:39.919

debits and add up all the credits and

0:22:38.720,0:22:43.280

subtract the two in our t

0:22:39.919,0:22:46.080

table it should come out to be uh

0:22:43.280,0:22:48.159

eight thousand nine hundred and ninety,

0:22:46.080,0:22:49.600

so we're off by a hundred.

0:22:48.159,0:22:50.960

What we have in our books is a hundred

0:22:49.600,0:22:52.320

dollars higher than what we actually

0:22:50.960,0:22:53.600

have on our shelves and we need to bring

0:22:52.320,0:22:54.559

it to what we actually have on our

0:22:53.600,0:22:55.760

shelves,

0:22:54.559,0:22:57.679

so what we would do is we would do a

0:22:55.760,0:23:00.799

journal entry that says

0:22:57.679,0:23:02.000

um oh excuse me the interest I

0:23:00.799,0:23:03.039

completely forgot about the interest

0:23:02.000,0:23:06.240

t-table

0:23:03.039,0:23:08.000

there we go. So 12 31 we're going to

0:23:06.240,0:23:11.200

expense the inventory that we lost

0:23:08.000,0:23:13.520

we're going to call it cogs again

0:23:11.200,0:23:15.200

inventory loss because it's not because

0:23:13.520,0:23:16.880

this is not expense because we sold it

0:23:15.200,0:23:18.320

this is just because we lost value or we

0:23:16.880,0:23:19.600

lost it somehow some either somebody

0:23:18.320,0:23:22.880

stole it or whatever

0:23:19.600,0:23:25.280

but we lost 100 and then our

0:23:22.880,0:23:27.039

credit is going to be inventory because

0:23:25.280,0:23:28.960

we're lowering our inventory by that

0:23:27.039,0:23:30.480

100,

0:23:28.960,0:23:32.159

so it would look like that put that in

0:23:30.480,0:23:35.600

my t tables,

0:23:32.159,0:23:38.320

looks like this there we go.

0:23:35.600,0:23:39.360

Okay. So that takes care of all of our

0:23:38.320,0:23:40.799

operational

0:23:39.360,0:23:42.720

journal entries, that takes care of our

0:23:40.799,0:23:44.400

adjusting journal entry, the next thing

0:23:42.720,0:23:46.159

we need to do is to

0:23:44.400,0:23:47.520

find the account balances for all of

0:23:46.159,0:23:49.279

these accounts, so again

0:23:47.520,0:23:51.200

add up the debits add up the credits

0:23:49.279,0:23:52.320

subtract the two and the numbers should

0:23:51.200,0:23:54.240

go on the

0:23:52.320,0:23:56.400

uh plus side or the normal side of the t

0:23:54.240,0:23:58.720

table, so just to kind of give you

0:23:56.400,0:23:59.919

uh a heads up or a head start kind of

0:23:58.720,0:24:01.520

save some time I'm just going to post

0:23:59.919,0:24:04.159

these real quick.

0:24:01.520,0:24:05.200

Our cash ending inventory is four

0:24:04.159,0:24:08.159

thousand

0:24:05.200,0:24:10.080

uh forty eight thousand eight sixty, our

0:24:08.159,0:24:12.000

ending inventory for

0:24:10.080,0:24:13.520

uh ending balance for inventory is going

0:24:12.000,0:24:15.039

to be eight thousand eight ninety which

0:24:13.520,0:24:17.520

makes sense because remember our

0:24:15.039,0:24:19.279

uh adjusting entry said that we still

0:24:17.520,0:24:21.440

had 8890

0:24:19.279,0:24:22.720

on hand and I'm just gonna put the rest

0:24:21.440,0:24:24.400

of them up here if you want to

0:24:22.720,0:24:25.679

pause it copy those down this is a

0:24:24.400,0:24:26.960

really good thing to be doing kind of in

0:24:25.679,0:24:30.000

your notes, so

0:24:26.960,0:24:31.919

there you go and that is how we

0:24:30.000,0:24:33.279

do this. I will say I just noticed

0:24:31.919,0:24:34.400

something that retained earnings should

0:24:33.279,0:24:36.080

not be there

0:24:34.400,0:24:37.440

um we haven't done anything with

0:24:36.080,0:24:40.480

retained earnings yet so just

0:24:37.440,0:24:42.400

erase you forget that right now, but uh

0:24:40.480,0:24:45.600

hopefully this part of this made sense

0:24:42.400,0:24:48.640

um the next video we will be doing

0:24:45.600,0:24:49.279

the uh trial balance and we will be

0:24:48.640,0:24:52.480

doing

0:24:49.279,0:24:54.159

the financial statements so

0:24:52.480,0:24:55.919

uh and then after that the third video

0:24:54.159,0:24:58.240

we'll be doing the closings, so and then

0:24:55.919,0:24:59.679

the final post-closing draw balance.

0:24:58.240,0:25:01.760

But this is the first one hopefully

0:24:59.679,0:25:03.279

you've made it this far uh and the next

0:25:01.760,0:25:04.559

one we will be doing the other pieces so

0:25:03.279,0:25:06.000

if you want to take a pause

0:25:04.559,0:25:07.600

and try to do this on your own please

0:25:06.000,0:25:12.000

please feel free to do that but you'll

0:25:07.600,0:25:12.000

have a good one.

Contact Us

Accounting Cycle for a Merchandising Business - Part 1

Contact Us

What is the Accounting Cycle in a Merchandising Business?

Related Topics

Related Articles