Introduction to Bookkeeping from the Top Down
What you'll learn
- What does the "double" in double-entry bookkeeping mean and why is it needed?
- How to enter common business transactions using two methods: the balance sheet equation spreadsheet and debits and credits
- How to use the general ledger and trial balances to prepare the three financial statements (balance sheet, income statement, and statement of cash flows)
- How to make journal entries and generate the three financial statements in QuickBooks
- No prior knowledge or skills necessary, just a curiosity to learn what the "double" in double-entry bookkeeping means
Jump-start your accounting education by learning bookkeeping intuitively with diagrams and examples. Most people struggle with accounting because it is a new way to think. This course will have you conceptualize accounting by using diagrams. It will explain the "double" in double-entry accounting and why it is needed.
I provide simple diagrams of transactions, then show how they affect the financial statements. Only after you have a firm grasp of the double-entry concepts, do I show how to enter transactions first in a spreadsheet, then using debits and credits, and finally how to enter journal entries in QuickBooks.
Each lecture contains downloadable lecture notes and an online quiz. For one of the modules there is a Excel Spreadsheet for you to practice what you have learned.
Here are the course lectures:
Introduction. A quick overview of the course.
Start with the Big Picture. Overview of the bookkeeping/accounting job market and a look at Facebook's financial statements.
Story Example. Introduction of Thai Teak Concepts, a fictitious furniture importer that I use to illustrate transactions.
First Month's Checkbook. Illustration of reason Thai Teak Concepts checkbook can't reveal revenues and expenses.
What Is Double Entry Accounting? Diagrams of two sides to every transaction with stakeholders of company
What Are Assets, Liabilities, Equity, Revenues, Expenses? Definition of terms.
Why Are There Three Financial Statements? With diagrams, illustrate how different sides of transactions affects different financial statements.
The Spreadsheet. Introduction of Excel spreadsheet to initially record transactions.
Illustration Month 1. Use of spreadsheet to enter transactions for month 1 of Thai Teak Concepts
Illustration Month 2. Use of spreadsheet to enter transactions for month 2 of Thai Teak Concepts
Interactive Financial Statements Month 1. Use of diagrams to illustrate how different sides of month 1 transactions affect the financial statements
Interactive Financial Statements Month 2. Use of diagrams to illustrate how different sides of month 2 transactions affect the financial statements
Can't Measure Profits with Cash. Illustrate the three timing differences between payments and expenses and the three timing differences between receipts and revenues.
Debit Credit Introduction. Definition of terms and explanation why people get confused about debits and credits.
Debt Credit Example Month 1. Use debits and credits to enter month 1 transactions for Thai Teak Concepts.
Debt Credit Example Month 1 Posting. Post entries to the general journal to the general ledger for month 1.
Debt Credit Example Month 2. Use debits and credits to enter month 2 transactions for Thai Teak Concepts.
Debt Credit Example Month 2 Posting. Post entries to the general journal to the general ledger for month 2.
QuickBooks Introduction. Overview of QuickBooks's capabilities.
QuickBooks Chart of Accounts. Overview of QuickBooks's chart of accounts and customizing it for Thai Teak Concepts
Debt Credit Example QuickBooks Month 1. Post entries to QuickBooks for month 1.
Debt Credit Example QuickBooks Month 2. Post entries to QuickBooks for month 2.
Who this course is for:
- Those who want a quick start to their accounting education
- Those seeking an accounting career
- Those seeking a bookkeeping job
- Those who want a quick start to keeping small business books
David Johnson, Ph.D., is a retired full-time faculty member at Northcentral University.
He has over 30 years teaching experience at the college level, with 25 years teaching accounting. Over the years he has grown frustrated with the way accounting is taught, which inspired him to obtain his Ph.D. in education from the University of Minnesota. He also has a masters degree in marketing/finance from the J. L. Kellogg Graduate School of Management, Northwestern University and a bachelors degree in accounting from the University of Illinois. He began his career in public accounting after passing the CPA exam.
His passion is instruction and how people learn. He has designed his Udemy course with principles learned from his Ph.D. studies, recognizing that most people want to be able to determine how a company is doing by reading financial statements. They don't want to become accountants first.