Financial Accounting & Bookkeeping: Beginners to Advanced.

Explore how the balance sheet provides a snapshot of a company's financial health by detailing assets, liabilities, and equity at a specific moment, including current and long-term categories.

Explore how the income statement (PNL) summarizes revenue, cost of goods sold, gross profit, operating income, and net income to assess profitability and margins.

Explore the cash flow statement, detailing cash inflows and outflows and the three activities: operating, investing, and financing, with direct and indirect methods using depreciation, amortization, and working capital changes.

Explore three inventory valuation methods (FIFO, LIFO, and weighted average) and how each assigns cost of goods sold and ending inventory with practical example comparisons across standards.

Learn how depreciation allocates asset cost over its useful life, impacting the balance sheet and income statement, with methods like straight-line, declining balance, unit of production, and double declining balance.

Straight-line depreciation allocates the asset's cost over its life. Calculate depreciation as cost minus salvage value divided by useful life, a simple method accepted by GAAP and IFRS.

Apply the declining balance depreciation method to accelerate expenses in early years by applying a fixed rate to the asset's book value, reducing taxable income and ending at salvage value.

Double declining balance depreciation uses a 40% rate on a 100,000 asset, yielding 40,000 in year one, 24,000 in year two, and 14,000 in year three, stopping at salvage value.

Learn the sum-of-the-years-digits depreciation method, assigning higher expenses in early asset years with the depreciable amount (cost minus salvage) divided by the sum of years, shown in a five-year example.

Explore accounting for accounts receivable and bad debts, and apply percentage of sales, aging of receivables, and historical methods to estimate uncollectibles and protect cash flow.

Apply the percentage of completion method to long term contracts, recognizing revenue based on contract value and costs over the project life to match revenue with incurred costs.

Explore the percentage of completion (POC) method with a year-by-year contract example, calculating revenue and margins as costs accrue for a 1 million US contract.

Master adjusting entries to align revenues and expenses with the accrual concept, updating balance sheet and income statement accounts through accrued income, accrued expenses, deferred revenue, and prepaid expenses.

Master bank reconciliation by comparing internal records and bank statements, including opening balances and matching transactions. Use supporting documents to spot discrepancies, prevent fraud, and ensure accurate financial reporting.

Identify and reconcile outstanding items and deposits in transit, audit bank charges and interest, and construct a reconciliation statement to align bank and book balances.

Apply an Excel bank reconciliation case to align the general ledger with the bank statement for August 2024, starting from the beginning balance and ending with zero difference after adjustments.

Engage in a practical company case study to build a chart of accounts and prepare a 2025 financial statement using asset, liability, equity, revenue, direct costs, and indirect costs.

Learn to book transactions with journal sheets linked to chart of accounts, using debits and credits and cash types, and automate the trial balance and statements with xlookup and sumif.

Record the owner's 150,000 cash investment to form the company, debiting cash and crediting common stock, and verify the trial balance and cash flow effects.

Record a cash purchase of 500 hiking boots at $50 each, updating inventory and cash to $25,000 and compute weighted average cost of $50 per unit in inventory tracking sheets.

Record a second inventory purchase on credit, increasing inventory to 43,000 and accounts payable to 18,000, and compute the weighted average cost of stock.

Learn how to record credit sales, recognize accounts receivable and sales revenue, and prepare income statements and balance sheets, including cost of goods sold, weighted average cost, and ending inventory.

Record a purchase of hiking boots, updating inventory by 400 units at 55 and cash and cash equivalents; stock reaches 5,000 units, value 54,250, with a 55 weighted average cost.

Record cash receipts from selling 150 hiking boats at $80, totaling $12,000, increasing cash and revenue, and track inventory movement and cost of goods sold using weighted average cost.

Record cash purchase of display shelves worth 12,000 for retail store PPE, increasing fixed assets (property, plant and equipment, account 1500) and depreciation for six months from July 1.

record a 5,000 payment toward accounts payable for inventory, debiting accounts payable 2000 and crediting cash 1000, reducing the balance to 13,000 and reflecting cash paid to suppliers.

Record a 40,000 bank loan to fund expansion, increasing cash and recognizing a loan payable as a liability; show financing activities reflecting the cash inflow.

Record sales on credit by updating accounts receivable and revenue, calculate cost of goods sold from inventory tracking, and reflect gross margin and net income through journal entries.

Record salary transaction by debiting wages and salaries for gross pay 5000 and crediting social security payable 500, income tax payable 500, and salaries payable 4000 to reflect net pay.

Record year-end adjusting entries for depreciation, bad debt provision at 3%, and corporate taxes, and compute depreciation on a 12,000 asset over five years starting in July.

Explain how to calculate bad debt expenses from accounts receivable and record the allowance for doubtful accounts using 6810 and 1150, affecting net income.

Record corporate taxes expenses using net income before taxes, apply 20% tax rate, and recognize a tax payable while updating the financial statement for this year 2025.

Analyze a year-end financial statement with quick checks of assets, liabilities, cash flow, and profitability, comparing to the previous period and highlighting capital, loans, revenue, gross margin, and net income.