PROPERLY Record Debits and Credits with Examples (EASIEST Method)

3 December 2019 Unleash your inner Financial Pro‍‍‍‍
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Use our secret weapon ADEx LER (Accountants Don't Expect Low Earning Rates) to apply Debits and Credits to actual transactions of a business. We will learn how double-entry bookkeeping takes everyday activities and turns them into data that can be processed.
First, we will visualize transactions with T-Accounts (3:57), later with journal entries (8:38). Finally, we will create the resulting income statement and balance sheet to see how the accounts flow into these statements.

This video will answer common questions like:
- How do your write and record debits and credits? 1:22
- What is a credit with example? 2:09
- How is a journal entry recorded? 8:40
- What are COGS? 10:50
- Is expense a debit or a credit? 11:00

Overview:
Debits and Credits are a fundamental part in accounting. To memorize the rules easily just remember: Accountants Don't Expect Low Earning Rates. The process of recording transactions with debits and credits is referred to as double-entry bookkeeping, because there are ALWAYS at least two accounts involved.

We will follow Claudio's beach business for one day and record the transactions that happened during this day. We will start out with Claudio investing his own, private money into the business. Then, record the transaction for buying inventory and finally, the sales of the merchandise to tourists.

Last step is to create the resulting income statement and balance sheet based on these transactions.

Chapters:
Owner putting Equity in company - 2:09
Buying Inventory with Cash - 5:42
Recording Sales - 7:20
Recording COGS - 10:03
Summary of Transactions - 12:02
Income Statement - 13:15
Balance Sheet - 13:35

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