Recorded: May 19, 2020
Released: May 19, 2020
Intro by Clive Castle
Sounds by ZapSplat
This week Patrick dives deeper into Income Statements. They are more than just numbers on a report. They contain valuable information about activities that happen over a period of time. He explains Vertical Analysis and provides some suggestions on what to do with the information you receive after analyzing this financial statement.
Resources
Recorded: May 5, 2020
Released: May 5, 2020
Intro by Clive Castle
Sounds by Zapsplat
Assets = Liabilities + Owner’s Equity is a fundamental element of bookkeeping and accounting. Patrick explains why it is important and you’ll get an understanding of what happens when it doesn’t balance.
For additional understanding, please review Episode 004 on Debits and Credits, Episode 005 on Double Entry Bookkeeping, and Episode 006 on Answers to Sample Transaction Data. Reviewing these previous episodes and thinking about the effect on the accounting equation can really bring the concept home.
Recorded: April 28, 2020
Released: April 28, 2020
Intro by Clive Castle
Sounds by Zapsplat
This week, Patrick provides the answers to the Sample Transaction Data that was included in last week’s show notes. If you haven’t completed the transactions yet be sure to do so before listening to the answers in this week’s episode. Let us know how well you did and whether you thought that the practice set was helpful or not.
Resources
Answers to Sample Transaction Data
Norcom 4-Column Columnar Pad – A great, inexpensive pad when practicing bookkeeping
Recorded: April 14, 2020
Released April 14, 2020
Intro by Clive Castle
Sounds by Zapsplat
In this episode, Patrick explains the difference between debits and credits. To best understand this concept, simply remember that Debits exist on the left side of an accounting transaction and credits exist on the right side.
Debits do NOT mean Increase in every situation and Credits do NOT mean Decrease in every situation! It all depends on the type of account. For Asset accounts, Debits increase the balance and Credits decrease the balance. For Liability and Equity accounts, Credits increase the balance and Debits decrease the balance. Listen to the episode to learn more!
We have added some resources below to help you better understand Debits and Credits. Please let us know if these help. We are enjoying making these!
Debits Credits Infographic (PDF)
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