In this video, discover how debits and credits are translated into journal entries. These journal entries impact the reporting for an organization.
- Journal entries summarize the accounts involved … in a transaction, … whether those accounts increased or decreased … and the associated amounts. … Each journal entry has its debit amounts … equal to its credit amounts … to ensure that the accounting equation is maintained. … Now preparation of a journal entry … involves a three-step process. … Identify which accounts are involved, … for each account, determine if it's increased or decreased, … and for each account, … determine by how much it changed. … Now by tradition, in a journal entry, … the account being debited is listed first … and the account being credited is listed second. … Let's now gain some experience with journal entries … by recording, in journal entry format, … the transactions for Hannah Collister … and her business, Hannah Market. … Transaction one, … invested $700,000 of her own cash in the business. … The two accounts involved are cash and paid-in capital. … Two, the asset, cash, is increased, … so cash must be debited. …
- Accounting basics
- Reviewing the balance sheet and income statement
- Credits, debits, and journal entries
- Making financial statements
- Issues in financial accounting
- Revenue recognition
- Deferring taxes
- Analyzing financial statements
Skill Level Beginner
Accounting Foundations: Internal Controlswith Kay Stice1h 46m Intermediate
Cost Accounting: Analyzing Product Profitabilitywith Rudolph Rosenberg56m 49s Intermediate
Why financial accounting?1m 13s
1. Accounting Basics
The accounting equation3m 37s
2. The Financial Statement
3. The Mechanics of Accounting
4. Current Issues in Financial Accounting
5. Financial Statement Analysis
- Mark as unwatched
- Mark all as unwatched
Are you sure you want to mark all the videos in this course as unwatched?
This will not affect your course history, your reports, or your certificates of completion for this course.Cancel
Take notes with your new membership!
Type in the entry box, then click Enter to save your note.
1:30Press on any video thumbnail to jump immediately to the timecode shown.
Notes are saved with you account but can also be exported as plain text, MS Word, PDF, Google Doc, or Evernote.