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Video instructions and help with filling out and completing Fill Form 8815 Accrued

Instructions and Help about Fill Form 8815 Accrued

Yo yo yo, what's up fam? I'm the strongest CPA in the state of Florida, and I'm back again. What's up fam? This is HB 34, my classic series, the best accounting series in the world, accounting forever. If this is your first time, I will link a playlist over here to the best place in the world. If you're back, you know what it is. Let's get started. So, the first topic of today is accounting for beginners number 34: Journal Entries for Accrued Revenue. - Now, for those of you who are new to accounting, let me explain what a crude revenue means. It refers to unrecorded revenue that has been earned. In other words, you have done some work but haven't received the payment yet. So, how do we account for this situation? We use a journal entry. - Before we dive into the journal entry, let me share a mnemonic that helped me remember this concept. Every day, for about a year, I wrote "accrued equals no cash" on my paper. This reminder helped me understand that when you accrue revenue, you earn the money but don't receive the cash immediately. It's important to jot down such reminders to stay on track with your accounting practices. - Now, let's focus on the journal entry itself. On top of my paper, I used to write "DCL" to remind myself of debit, credit, asset, expense, and liability. Every revenue transaction follows this pattern. So, the journal entry for accrued revenue will depend on the specific transaction, but it will always include debits and credits. - Back to our example, let's say on December 15th, I met with a client who agreed to pay me $100 for monthly bookkeeping services. However, by December 31st, I hadn't received the payment yet. This is where...