T Account and Trial Balance - Example 2
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Example of Journal Entries on T - Account and Trial Balance
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Hey everybody, welcome back to part two of chapter
two example. And in this video we are going to
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be taking what we did in the last video with the
journal entries and T tables, and more specifically,
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probably with the T tables and converting thatÂ
into what we call an unadjusted trial balance. Â
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As we will talk about in future chapters, whatÂ
the accounting cycle is. There's a few spots Â
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in there where we have to do these things isÂ
called a trial balance. And the travel one is Â
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just kind of a check mechanism to make sureÂ
that our debits and our credits are equal. Â
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Remember that's one of the big things that we haveÂ
to have when we're doing double entry accounting. Â
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I'm going to show you how to do that today.Â
What we're going to do is we look at all of Â
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our key table specifically and we're going toÂ
find our account balances for those two tables. Â
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Some of these are going to be really easy becauseÂ
there's not much going on with them. Some of the Â
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are going to be a little bit more challenging,Â
especially cash. So Let's start with cash Â
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first. So Let's start with cash first. Now whatÂ
you want to do to find your account balance is Â
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to add up all the debits and then out of all theÂ
credits and then subtract the two numbers. And Â
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whatever the difference is, that's going to beÂ
your account balance. And it should go on this Â
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side. That is the plus side, which is alsoÂ
the side that should have the higher amount. Â
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So if you were to do this for cash and by theÂ
way, you want to pause this, stop it and try Â
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this on your own. Please do. Because again,Â
they'll let you know what you don't know Â
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if you need help, whether or not. But whatÂ
you do is you add up all of your credits, Â
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you add up all of your debit, and when you doÂ
that, you should get a total of 200 and 9,000. Â
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Then you're going to add up all of your credits.Â
If you do that, you should get a total of 180,500. Â
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Then you subtract the two and that will give youÂ
a total difference of 28 5 and it go again on the Â
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debit side. So Let's start with on our trialÂ
balance to start with cash under the debit, Â
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because this is a debited account. This isÂ
where my debit goes. I'm going to put 28Â Â
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5. Alright, Let's go to the next one. I want toÂ
do a I'm going to do these as a specific order Â
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just because this is how they naturally would go.Â
A I'm going to take my 1 65. Subtract out 1 41. Â
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That's going to give me a difference of 24,000.Â
Again, that's going to go on the debit side. Â
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I'm going to put that down. Alright. Next I'mÂ
going to do supplies. Supplies is pretty easy. Â
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There's only two things I haveÂ
to add up, which is 400 and 1,500Â Â
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that's going to give me a total ofÂ
1,900. Again, that's on the debit side. Â
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I'm also going to put prepaid prepaid Super easy.Â
There's only one thing I have to worry about, Â
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and that's 24,000. Someone put that down. And thenÂ
the same thing with Land. Land is going to have a Â
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debited balance of 100,000. Right now. I'm goingÂ
to move on to my liabilities accounts payable. Â
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I'm going to subtract the two numbers 44 minusÂ
the 30. That's going to give me an accounts Â
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payable balance of a credit of 14,000 memberÂ
liabilities. The credit side is the normal side. Â
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So 14,000 and then unearned revenue is going toÂ
be 18,000 because nothing's changed from that. Â
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Now we go into the equity account. So we haveÂ
common stock, common stock. We just add up Â
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those two numbers that's going to give us 40,000Â
to the credit. Retain earnings is going to be Â
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10 4. Again, we haven't do anything for thatÂ
one. So 10,400 dividends dividends is going to Â
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be 5,000 towards the debit. Then we haveÂ
consulting revenue of 165 on the credit, Â
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then salaries expense 20,000 on the debit. Â
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And then finally we have miscellaneous expense ofÂ
44,000 on the debit. Now you're probably wondering Â
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why did I go in this order? Right on. I justÂ
go in the order in which I have them on the TÂ Â
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table. These are the actual orders ofÂ
the codification numbers that we have. Â
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You don't have to use this. It can kind of goÂ
in any order because they all add up the same. Â
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But once we get to this point, I'm going to takeÂ
everything in the debit column and add it up. Â
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And so if I do that, that's going to give me 200Â
and 47,400. And then I'm really hoping a lot that Â
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my credit column is going to add up to be theÂ
same. So when I add up my credit column and then Â
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it is actually the same 200 and 47,400, we are onÂ
the right path. There's nothing that we have to Â
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go back and review necessarily based on this. SoÂ
again, this is just kind of a check stop to make Â
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sure that we're doing things that we're supposedÂ
to be doing. Everything is adding up the way it Â
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should be. And then that way we can move on to theÂ
next step of the accounting cycle. There you have Â
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it. That is how you do an unadjusted TRA bonds.Â
Now would not throw away this problem quite yet, Â
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because in chapter three, we're actually going toÂ
finish the accounting cycle using this problem. So Â
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this is still going to be very important for youÂ
to have the T tables and everything, because we're Â
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just going to continue adding on to it. But forÂ
now, I hope you enjoyed this. You all take care.