Accrued Expenses Broken Down | Adjusting Entries

you're the best

The “find that video up here” gestures don’t age well 😂

I always knew gift cards were liabilities however these videos actually made it make sense since a gift card is a prepaid expense.

Thank you for your videos; they've really helped me understand adjusting entries much better. 👍👍👍 I have a question regarding accrued expenses. In the end of January, after making adjusting entries, the utilities expense for January is showed as $153 on the income statement. How can we ensure that the income statement accurately reflects the actual utilities expenses of $53 for January?

Amazing work! You do an excellent job explaining these concepts!!

Just reviewing again and again cuz whenever i look in textbook i lose confidence

Thank you so much for these.

This is damn good stuff

How's Accounts Stuffs car going, not too good having insurance for car $2000 a year. What is his actual name, and is this his main job, or what is his main job?

Why not in Jan: debit utilities expenses: 53, debit accued: 100; credit accounts payable: 153

He includes multiple expressions of his face like a cartoon.

So, I have an accrual schedule where each month the accrual from last month reverses, and I post a new accrual for the previous month and current month, just like in your example. However, we payout a percentage of the expense for, let's say, the previous 4 months. Now when I post a new accrual in month 5, it would need to be: (initial accrual/month minus payout amount/month) times 4 prior months + accrual amount for month 5. Correct? To make things even more complicated, in month 6, we have another payout percentage that now covers all of the previous 5 months. So now the accrual balance to post, for the first 4 months is: (((initial accrual - 1st payout - 2nd payout/month) *4 months) + (initial accrual amount for period 5 - 2nd payout amount) + (accrual for period 6)). Is that how we would recalculate the accrual schedule?

👍

Fantastic explanation as always!

Don’t intro twice… but great videos!!! Best on the net!

I love your videos, but that cup of tea was criminal! lol! Thank you for all of this info though

I cannot thank you enough for this video. When you talked about the two accounting triggers, the context made sense.
I agree with all the comments, you are a Star !!!!!

Thanks for this great video James... accruals explained to a T 😁🔥👍🏽🧡🕉

Wow ! You make accounting so easy. Thank you

Hi James, I have a question: in this example, when you got the invoice charging $153 for the 3 months of service, doesn't that mean that the accurate expense for each month is $51? (153 / 3).
And yet, we debited expenses by $50 for each of the first 2 months. Shouldn't they be adjusted to reflect $51 per month instead, because we want to accurately represent the Income Statement?

4 years later Im still watching your videos for my accounting exam

well explained.

Currently preparing for my first exam for ACCT 2101, you're a lifesaver!!!

I understand what this is saying but it seems like such a roundabout way of doing things - why not just debit the accrued expenses and credit AP line-items when the invoice comes in, rather than debitting the Utility expenses, crediting the AP and then debitting accrued expenses?

Excellent explanation. Many thanks for your easy way of let one understand.

I've just finished my AAT Level 2 course (and passed, thankfully!) and am about to start Level 3, which talks about Accruals and Prepayments.... I had a quick peek in the Tutorial book and sort of understood what they were talking about - but your easy to understand - and very likeable way in which you explain, has really helped me to see 'how' all the transactions are posted in T-Accounts (as I use an Excel spreadsheet for my accounts currently! Thanks for taking the time to post... I will be be making time to watch (and like) all of them!!!!!!!!! :D

Thank you! This is the best accrual video ever! Not only it is clear but it also goes beyond the basics :)

You are wonderful.Your explanation is very impressive.Thanks so much .

Thank u sm for your great works and efforts you put into this video helping me so much for further exams

When do you close the remaining accounts? Would you credit cash and debit accounts payable when it's time to pay the expense followed by crediting the utilities expense and debiting income summary at the closing period?

This channel is very essential it build up my knowledge. Please sir I need economy from a to z

can anyone please explain the third entry. why we posted it under A/c payable instead of Accrued Expenses.

Thank you

thank you❤‍🔥

Not sure how many people have mentioned this, but regarding when he actually got the $153 invoice and chose to debit expenses...isn't that balance of $100 non-existent? Because that account should've been closed due to closing the prior period. So you're left with a $0 balance utilities expense account.

Accrued expense 100. Dr
Utilities exo. 53. Dr
To electricity Payables 153
Is it possible?

Another great video. Thank you!

Hi, can you please explain why in sap accrual needs to be reversed every month

If you didn’t receive the bill in January and say you received it 6 months later what amounts would you accrue?

I want to learn irr and nvp.

I Found A Gem Right Here.
This channel is an Asset.❤

hawu James! such little milk

Hello! I really like your videos :) i have one question. If a payment done (for membership for example) and we didnt receive the invoice yet, in this case we need to do an accrual as well?

Hello. I wonder for accrued we have to add 100$ or any amount? Thanks

Hi James .
What is the main deferences between AP vs Accrued Expenses ?

Thanks in advance for all what you’ve did for accounting community 😊

Can you teach payroll accruals. Having a hard time

Excellent video, but......that cup of tea looked awful. 🙂