How Prepaid Expenses Work | Adjusting Entries

Подписаться 763 тыс.

Просмотров 270 тыс.

50% 1

💥Adjusting Entries Cheat Sheet → accountingstuff.com/shop
🖊Adjusting Entry Practice Questions → accountingstuff.com/practice-...
Prepaid Expenses are one of the most common forms of Adjusting Entry in Accounting. In this video, you'll learn what a Prepaid Expense is, and I'll show how to account for them correctly, using Journal Entries and T Accounts.
I'm creating a whole mini-series devoted to this topic which will include worked examples for each of these four types of Adjusting Entry...
▪ Intro to Adjusting Entries → • Prepayments and Accrua...
▪ Prepaid Expenses → • How Prepaid Expenses W...
▪ Deferred Revenue → • Deferred Revenue Expla...
▪ Accrued Expenses → • Accrued Expenses Broke...
▪ Accrued Revenue → • Accrued Revenue MADE E...
🔝 CLOUD ACCOUNTING SOFTWARE
▪ QuickBooks Online USA (FREE TRIAL/DISCOUNT) → geni.us/jA9N
▪ QuickBooks Online Canada (FREE TRIAL/DISCOUNT) → geni.us/bNN7
▪ Xero (FREE TRIAL) → xeroamericas.grsm.io/ck90eoq1...
FAQ
▪ My Favourite Accounting Book for Beginners → geni.us/5mKR7m
🚶FOLLOW ME ON
▪ Instagram → / accountingstuff
▪ TikTok → / accounting_stuff
▪ Facebook → / thisisaccountingstuff
LEARN ACCOUNTING BASICS FOR FREE
▪ The Full Playlist → • ACCOUNTING BASICS for ...
________________________
DISCLAIMER
Some of the links above are affiliate links, where I earn a small commission if you click on the link and purchase an item. You are not obligated to do so, but it does help fund these videos in hopes of bringing value to you!
________________________
#accounting #accountant #accountingstuff

Опубликовано:

9 июн 2019

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 419

@rakeshmhatre8958 5 лет назад

Prior to this channel, I used to score hardly 40 or 50 out of 100. But because of your videos with simple explanation, I scored 70 in Finance and 80 in cost accounting. My accounting basics are cleared than ever before. Even I started to teach accounts my friends. And You gained my interest in Accounting. And I have decided to go for CA exams. BIG THANKS YOU AND KEEP GOING WITH THIS CHANNEL

@AccountingStuff 5 лет назад

Wow Rakesh, that is amazing! I'm glad to hear that it's all clicking for you. Thanks for your support and all the best with your CA exams. You'll crush them!!

@yoonusahameth4493 3 года назад

@@AccountingStuff 👌👌👌👌👌👌👌👌

@sapsalingpusacattalkmaykwe1556 2 года назад

😍😍

@snipergxs9852 Год назад

Curry

@danielkaniowski5694 3 года назад

You take away all the stress of accounting school. Every time I’m a bit lost in my lectures, I have peace of mind knowing there’s a video of yours somewhere that’ll clear things up for me

@AccountingStuff 3 года назад

That's great to hear! Hope it's all going well :)

@benjaminkuan1839 Год назад

Genuinely, please never stop making videos like these. You're inspiring so many future accountants. Props to you~

@user-bs4nd1eb6d 6 месяцев назад

EXACTLY

@treemane0 5 лет назад

Yep and this is what we were learning in class today, time to bump up ahead of my class❤️🔥🔥🔥

@AccountingStuff 5 лет назад

Haha, perfect timing then! Cheers mate

@Homenuggets 3 года назад

Thank you for this! I'm in a college accounting class right now, and am feeling so overwhelmed. I'm glad I found your channel!

@AccountingStuff 3 года назад

No problem Zach! Sorry to hear that you're feeling overwhelmed, all the best!

@nicolasgarcia454 3 года назад

Thats sad im im year 10 and looking at the same content

@valoxeronjr8949 2 года назад

Same

@topgamer2943 2 года назад

accrual means already happened and inuccrual means its not yet ?

@benjamin2151 4 месяца назад

Hell yeah

@WithFaizanKhan 5 лет назад

Best Channel On RU-vid For Accounting !

@AccountingStuff 5 лет назад

Thanks Faizan!!

@HerHallOfMirrors94 Год назад

Not everyone has a gift for teaching, but you do! Thank you SO much for helping me grasp this!!!

@erikagilo6855 3 года назад

i wish these videos existed when i was still a student! thank you for this good explanation!

@AccountingStuff 3 года назад

No problem Erika, hope it helped :)

@xSarangHeYox 4 года назад

Ahh thank you so much for making these videos! I'm an online student so I practically have to self teach myself through the textbook which is miserable since I'm completely new to accounting. Your videos have honestly made it so much easier for me to understand new concepts. I really appreciate all the effort you put into these videos!!

@AccountingStuff 4 года назад

Thanks Mina, these videos take a lot of work to put together so it makes me very happy to know that you're finding them useful. Good luck with your studies!

@Kelly-yc6pu 4 года назад

I just watched this video 3x, finally get it! I wish I had found these videos 3 weeks ago when I started my accounting class. This is lovely. Thank you!

@AccountingStuff 4 года назад

Nice one Kellie! Great to hear that it's clicking for you!

@mr.crinkles9943 3 года назад

I'm in review year in college and feelin like I haven't learned anything over the years. Going back to the basics and build it up from there. Your videos are very helpful. Thank you.

@AccountingStuff 3 года назад

That's great to hear! It always helps to go back over the basics. Best of luck with it all :)

@Jennie-mw2cl 9 месяцев назад

I work for a nonprofit, and our CFO just left. I'm having to take over most of his functions and your videos are helping me so much!

@AccountingStuff 9 месяцев назад

That sounds like a tough situation to be in. Best of luck with it all!

@271skippy 4 года назад

Literally, how would I even make it through accounting without your channel? Thank you so much for being here and sharing your expertise!!!!

@AccountingStuff 4 года назад

Great to hear that the vids are helping, all the best!

@vivianavondendriesch1453 3 года назад

I am new to accounting and I really love your videos, not only contentwise but also their technical quality is just amazing!

@AccountingStuff 3 года назад

Thanks, I appreciate it!

@paulbornuat5655 4 года назад

You are the best. I'm not an accounting student but I've always wondered how to think of prepaid expenses. It's like you read my mind. Turns out there are answers to my problems! This could be the most useful video I've ever watched on youtube. Thank you very much.

@AccountingStuff 4 года назад

Cheers Paul, hope it's all making sense for you!

@guts1859 3 года назад

I'm only in high school but your videos are teaching me more than my teacher at the moment. Cheers mate!

@AccountingStuff 3 года назад

No worries my young padawan. May the force be with you!

@darryltanzil Год назад

Thanks for this video! When you said you were from Vancouver I was a little shook because I'm from there too, and I recognized the landscape you were driving in!

@bajoobiecuzican 4 года назад

I love your teaching style. Brief, to the point, understandable, very clean lines. Thank you!

@AccountingStuff 4 года назад

You're welcome :)

@44godson Год назад

Amazing, now I understand why prepaid expenses are covered under an asset. The overall expense balance is carried for the annual period, and is being paid monthly to cover the overall expense. Once the annual period is done the expense should be at zero. Thanks for your content sir.

@AlienHeartUK 3 года назад

Just started level 3 advanced bookkeeping and had my first collage day yesterday.. We were introduced to it and i seriously couldn't understand it.. This has literally made me understand... Thank you so so much.. Especially with using the example it always helps to visualise for me... So thank you again 🙏🏻

@AccountingStuff 3 года назад

No worries, best of luck with your course!

@cdgarzon1 5 лет назад

Thanks James! I was looking in your channel for closing entries, but I couldn't find any videos. There is another topic you can cover in future videos :) Keep up the good work!

@AccountingStuff 5 лет назад

Hey Cesar, thanks for your suggestion. I'll keep closing entries in mind for future vids!

@ejeypalmon5273 4 года назад

Thanks so much man. I'm planning to take on accounting and thanks to you, I have a leg up on the competition now! Vids so easy to understand. Keep it up! More power!

@AccountingStuff 4 года назад

No worries Ejey, all the best!

@paulfoo7397 5 лет назад

HOW the heck have I only discovered your channel just now?! Lmao, kinda pissed me off, by myself HAHAHA Really appreciate the simplicity of your teaching and videos.

@AccountingStuff 5 лет назад

Haha, thanks mate!

@Cashman94 3 года назад

Your level of anger is nowhere close to mine. I was taking my accounting class in college when all these videos were posted already. Pulled an all nighter for the exam.

@angelotan2692 3 года назад

i also just wanted to say, ur channel is one of the most valuable channel in my list. thank u for ur honest hardwork and dedication in giving value to us. this is the legit first time i don’t skip ads, it’s the least that i can do to thank u. keep up the good work man!! hope to see u someday in the field of accounting. 😀

@AccountingStuff 3 года назад

Cheers Angelo, I'm happy to hear that you're enjoying the vids :)

@maxd1173 3 года назад

Omg you helped me understand adjustment from expenses to the prepaid account. I was stressing a hw problem all day. Thank you so much!

@AccountingStuff 3 года назад

No worries, hope it's making sense

@mohamedgamal9903 2 года назад

What a simple ,effective and great video! thank you so much

@SeraphPatrick 5 лет назад

The exam went well! Thanks for your tips. Great content as usual keep it up

@AccountingStuff 5 лет назад

Glad to hear it Patrick!!

@khanhpham5383 3 года назад

Wow, I just had an aha moment watching this. Thanks so much for your videos, they are my favorite since I found this channel last month :)

@AccountingStuff 3 года назад

Gotta love those moments! Glad it's clicked for you :)

@astl7305 4 года назад

OMG you cannot imagine how I gain help from this. I'm not gonna lie that I actually studied in a university which is ranked within QS 50 rankings for accounting major. But STILL they don't really explain detailedly how the (insurance) expense will look like in the end. And you show the actual detail process to emphasize each time period, and show how is the final relationship between expense and cash and to cancel the prepaid expense etc. Maybe they think every university student is so super smart not to explain lol they just said DR Prepaid Rent with CR Cash & DR Rent Expense with CR Prepaid Rent. Anyway I just want to say THANK U SO MUCH for saving time struggling.

@AccountingStuff 4 года назад

Hey Astella, no worries! It's can be helpful to return to the basics from time to time. When studying at University I often felt like I was studying just to pass the exams. I could only remember things in the short term and once the exams were over I'd immediately forget 90% of it. All the best!

@mohammadhattab4235 5 лет назад

Great video as usual! Please do a video on understanding financial ratios!

@AccountingStuff 5 лет назад

Cheers Mohammad, and thanks for your suggestion!

@ahmedelgarhy5934 3 года назад

You have no idea how you've helped me lad, Thank you so much and i hope all the best for you. Love from Egypt

@AccountingStuff 3 года назад

Cheers Ahmed, I'm happy to help! All the best :)

@bipuljain5790 3 года назад

the amount of effort you put in the video is amazing. Great quality videos. Keep them coming.

@AccountingStuff 3 года назад

Thanks Bipul!!

@abdulmateen5273 3 года назад

This guy deserves 10 million subscribers. 🙂

@AccountingStuff 3 года назад

Thanks Abdul!

@dudemeister421 2 года назад

Thank you for the video, very informative as always. Some accountants in practice debit prepaid expenses and credit accrued expenses payable, then proceed to expense the prepaid expense as time passes, and debit the accrued expenses when they actually made the payments.

@melany7376 4 года назад

Where have you been OMG... you like the best tutor i came across that just does it for me.... i am soo happpy... thank you. This videos will most def help me

@Credinellatuastoria 5 лет назад

You rock! Best accounting channel ever. Period!

@AccountingStuff 5 лет назад

Cheers Michele!!

@alisalimbu5828 4 года назад

Ur videos are such an awesome alternative for me like I wish u were my finance teacher

@klcrouch 3 года назад

You are awesome! Great examples and visuals. Thank you so much for helping me get through my accounting class.

@AccountingStuff 3 года назад

No problem Kat! Best of luck with your studies

@alexanderson7649 3 года назад

Dude...you are the BEST!!! I add your vids to my Watch Later list as my lecturer rambles online

@AccountingStuff 3 года назад

Cheers Alex, all the best with your studies!

@AC_Blanco 5 лет назад

Good to see you back!

@AccountingStuff 5 лет назад

Cheers Aaron!

@Marshall.2319 Год назад

This is SO helpful, thank you!

@tulipmoore4378 3 года назад

Thank you, my sincere appreciation for your talent and taking the time to share your knowledge!

@AccountingStuff 3 года назад

Cheers!

@theChurchofMilo 11 дней назад

I have the exact same blue Toyota Yaris! Thanks for making great videos, you explain things better than my textbook

@AccountingStuff 11 дней назад

Sadly I had to sell it a few years ago. Would love to have another!

@themainchannel9162 2 года назад

Thank you very much !!! your videos are very helpful.

@leontino7778 2 года назад

Best accounting channel! Thank you for your amazing work!

@AccountingStuff 2 года назад

Thanks and cheers for your support!!

@HPZIG Год назад

Thank you for your interesting videos! Accounting stuffs are explained in the best fun way by Accounting Stuff 😊

@nathaniela.diawuo5597 5 лет назад

❤❤❤ Just what I needed to start my week

@AccountingStuff 5 лет назад

Thanks Nathaniel, all the best!

@kulwantsingh7479 5 лет назад

I likes your videos because your teaching method is not boring

@AccountingStuff 5 лет назад

Thanks Kulwant, I'm glad to hear that you are enjoying the videos!

@btq7v3n 2 года назад

THANK YOU SM TEACHER FOR CLEARING MY CONCEPTS .. ITS REALLY HELP FUL .. 💜

@kell9963 4 года назад

Thank you for these videos. I'm taking accounting basics 1 in my late forties and it's been so long since I was in school. These videos have helped me learn much better than my textbook. Thank you!

@AccountingStuff 4 года назад

No problem Kelly, it's great to hear that these videos are helping you out!

@AccountingStuff 4 года назад

All the best with your course!

@kell9963 4 года назад

@@AccountingStuff thanks!

@anthonywurst2548 3 года назад

Lord, please bless this man for his time and efforts. Thanks so much!

@AccountingStuff 3 года назад

You're most welcome :)

@manuthtechniques3032 4 года назад

You are so great sir, as your videos are helping me a lot. thanks

@agneswu9612 3 года назад

Thank you so much James!!! I finally understand what prepaid expenses are! I always Google for knowing knowledge first but I search your channel for knowing accounting knowledge first like this time 😀 Fan from Taiwan 🇹🇼 (Btw really like your British accent!! Also a fan of British accent)

@AccountingStuff 3 года назад

No worries Agnes! Glad it's making sense :)

@gou123gou 2 года назад

Only if I got him as my teacher in my high school, that my basics would have been concrete. Good job man

@AccountingStuff 2 года назад

Thanks for your kind words :)

@yoasakura3412 Год назад

Before this video my mom used to hate me and kick me out of home. But now she love me and asking to come back. Thank you Accounting Stuff!

@ariah5093 Год назад

God bless you, Sir! ❤️

@mukurujonan2197 2 года назад

Love you bro , am overjoyed

@riyadh7099 2 года назад

Watching this video in 2022, it's been useful. Thank you for your amazing effort bro!

@user-ko7qn7fb8n Год назад

great video!!!

@maamounghnimi4748 3 года назад

the best accounting channel ever

@AccountingStuff 3 года назад

Thanks buddy :)

@paularonhidacan4157 3 года назад

I am now taking an Accountancy course, thankyou so much for these videos!

@AccountingStuff 3 года назад

No problem, all the best with your studies!

@khadirsz Год назад

Super very Clearly explained 👏 👌

@HahaHihi-dw5ot 4 года назад

yup Yup yup , at first i din't know anything about Accountan Because i didn't understand what my college teacher say . And you just pop up into my recomendation . Thanks to you

@AccountingStuff 4 года назад

Great, hope it starts making sense for you!

@johnq3543 3 года назад

Thank you James, great work.

@AccountingStuff 3 года назад

Cheers John :)

@user-sz2ny1ku9q 3 года назад

Thank you very much for all this love and respect you put into your content! A question - how do the accountants remember to subtract 1/4, 1/12, or whatever? How do they keep all the necessary adjustments in mind?

@AccountingStuff 3 года назад

It helps to keep the accrual method of accounting in mind. Revenue should be recognised as it's earned and Expenses should be recorded as they are incurred.

@ariellaazizi5871 5 лет назад

Thank you so much for all your help with these informative and entertaining videos! Would you be able to produce a video on the cash flow (operating, investing, and financing activities)?

@AccountingStuff 5 лет назад

Hey Ariella, no problem! I've actually made three videos covering the cash flow statement (including those three sections) that you can find in this playlist --> ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Xy-yDw0gsgc.html

@joywalton9534 3 года назад

Thank yu for this ive been stuck for like a week trying to figure this out

@AccountingStuff 3 года назад

No worries, glad it's making sense :)

@beyazbulut961 3 года назад

I enjoy your lessons so much

@AccountingStuff 3 года назад

Thanks :)

@lehlohonolomashiane6031 Год назад

You are good.. Thank you

@conniesmith8028 3 года назад

I loved your videos before BUT knowing you're a fellow Vancouverite... makes me love your videos even more :D

@AccountingStuff 3 года назад

Thanks Connie!!

@yunapark682 4 года назад

Thank you!! YOU ARE MY HERO :)

@AccountingStuff 4 года назад

Haha, no worries Yuna!

@sparkbeauty01 2 года назад

Thank youuuu!!

@alicewinter1925 3 года назад

your video is really easy to understand, even to me as a non-english speaker. this video is really helpful, thank you

@AccountingStuff 3 года назад

Thanks Alice, great to hear it's making sense!

@taylorfurlong7523 2 года назад

nice! i lived in poco and squamish for a few years

@jonathanpreshong9372 3 года назад

Could you do a video on Reversing Entries? Thank you so much for your simple way of explaining and clarifying what are more difficult topics. You are a LEGEND!

@AccountingStuff 3 года назад

Thanks for your suggestion!

@vica4213 3 года назад

Your Skin Is So Good. Its Satisfying to watch

@yza5878 3 года назад

THANK YOU SO MUCH FOR THIS PLAYLIST. YOU SAVE MY BRAINCELLS.

@AccountingStuff 3 года назад

No worries, hope you find it helpful!

@dyararf172 4 года назад

You have an excellent way of teaching.go on buddy.

@AccountingStuff 4 года назад

Cheers for the support!

@Kisembobusiness 3 года назад

Wow, this makes a lot of sense.. Thank you very much

@AccountingStuff 3 года назад

Cheers, happy to help :)

@halfofthespace9985 3 года назад

I was never an accounting student but studying accounting and bookkeeping without going to college again I began to understand what accounting is and why is it important. I want to be a Bookkeeper someday. Thanks.

@AccountingStuff 3 года назад

Self learning is the way to go! Good on you

@erinwhettell7947 3 года назад

Very informative!

@AccountingStuff 3 года назад

Thanks Erin!

@AstroBlack143 3 года назад

Dude THANK YOU!

@AccountingStuff 3 года назад

You're most welcome :)

@doctemplstore1448 Год назад

Happy to share my knowledge. USA A B VISA is one of a category of non-immigrant visas issued by the United States government to foreign citizens seeking entry for a temporary period. The two types of B visa are the B-1 visa, issued to those seeking entry for business purposes, and the B-2 visa, issued to those seeking entry for tourism or other non-business purposes. In practice, the two visa categories are usually combined together and issued as a “B-1/B-2 visa” valid for a temporary visit for either business or pleasure, or a combination of the two. If you want to get one of that visa I recommend to consider the editable template as it is quick and easy to modify. I found one of that

@bernardyeo9077 4 года назад

Good stuff!

@lianilamka872 5 лет назад

thanks for the teaching

@AccountingStuff 5 лет назад

No problem Lian!

@HOMEFOODMANIACS 5 лет назад

Awesome explanation

@AccountingStuff 5 лет назад

Thanks mate :)

@Supremepie 3 года назад

You're the best.

@AccountingStuff 3 года назад

Thanks!

@amywaldren4062 4 года назад

This is amazing and really helpful! Please teach me the whole of the CIMA qualification!! Please can you do a video on irrecoverable debt and allowance for receivables?

@AccountingStuff 4 года назад

Thanks Amy, glad you found it useful. I'll keep your suggestion in mind for future vids

@shahdshtaya 5 месяцев назад

Thanks this is helpful

@AccountingStuff 5 месяцев назад

No worries, that's great to hear!

@saculreab2745 4 года назад

Your videos are super helpful with a confusing topic. Could you do a video on depreciation and contra accounts?

@AccountingStuff 4 года назад

Cheers Lucas, yes I have plans to cover Depreciation in the near future

@AntediluvianBrew 5 месяцев назад

Thank you now I understand

@AccountingStuff 5 месяцев назад

That's great to hear :)

@syedfarooqkamal409 6 месяцев назад

Your your videos are really helpful. I would be really thankful if you can post video on unearned revenues

@AccountingStuff 6 месяцев назад

Here you go: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-F1zNQ1wga7o.htmlsi=bjMM1UkwWA9r5eOd

@kalandaderrick1382 Год назад

thanks

@savinpoojary2756 4 года назад

Thank you so much . completely understand by Ur video

@AccountingStuff 4 года назад

Cheers Savin, great to hear it's making sense

@savinpoojary2756 4 года назад

Ur from?

@AccountingStuff 4 года назад

@@savinpoojary2756 England :)

@savinpoojary2756 4 года назад

It Great help from Ur side. And thank you so much

@seisopheapanya7528 2 года назад

Thanks...sir. I've come here to review this lecture.

@AccountingStuff 2 года назад

No worries, hope it helps!

@alfredoclarajr.2562 3 года назад

I can't just leave this vid without saying my thanks!

@AccountingStuff 3 года назад

Cheers Alfredo, hope it makes sense!

@brucewashington8066 2 года назад

Hello James, I would like to know if software from website hosting companies and zoom can be considered a prepaid expense. Have a good one and keep up the goo work!

@nvanhuu 2 года назад

In the Vietnamese Accounting system, we recognize directly Prepaid Expenses and then allocate Prepaid Expenses to Insurance Expenses for each accounting period.

@jobharath2812 7 месяцев назад

Thanks lad 😢 👍🏽

@AccountingStuff 7 месяцев назад

You're welcome :)

@kotiejoubert2147 4 года назад

Can you do a video about what you do with consumables at end of year.

@AccountingStuff 4 года назад

Cheers for your suggestion!

@kotiejoubert2147 4 года назад

Can I maybe ask a question about it

@tiaanlorenzen7778 4 года назад

I also have a question about it . Why does consumables boight during the year get placed in the expense column if youre not sure its all gonna be an expense for the year