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Female Narrator: Welcome back
to another Lions and Tigers video.
We're now going to make the December entries,
and go and do the adjusting entries,
and finish out the accounting cycle.
But in order to get started, you needed to go ahead
and print out the November trial balance
with a list of all the new accounts
we're going to be using this week.
So make sure you have that in front of you,
so we can go ahead and get started.
So the first thing that we needed to do
is go ahead and go through
and make those entries for December.
So we were given some entries for December,
and the first one said that as on December 5th,
we collected $500 cash for grooming services provided.
So how do we go about and record this?
Now hopefully, this is a review of what we've been doing
but a great practice for you.
So on December 5th, we collected cash.
So we debit cash for 500,
and we credit grooming revenue...
for 500.
Then, the second entry says that on December 12th,
we provided some services on account.
We did some grooming on account.
So we're going to debit accounts receivable for 300,
and we're going to credit grooming revenue for 300.
Then on C, or December 14th, we paid for the supplies
we purchased on account last month.
Now, we don't need to record the supplies,
because we already did that.
What we need to record is that we're paying off the bill.
So we're going to debit accounts payable for 500,
and we're going to credit cash for 500.
On December 15th, we collected 232 from a customer on account,
so this is a customer that charged some stuff last time.
We did services on account for 'em,
and now, they're just paying us.
So we're not gonna record any new revenue.
We're simply going to record cash of 232,
'cause cash went up.
And we're going to credit accounts receivable,
because they paid off their bill.
On E, on December 16th, we paid our employee $125.
So we debit salary expense for 125,
and we credit...cash for 125, because we're writing a check.
Remember, cash is an asset.
To make it go down, we need to credit it.
On F, or December 18th,
we paid for two weeks of janitorial service.
So we're going to debit our cleaning expense for 350,
and I'm going to credit cash for 350.
On Part G, or December 20th,
our customer paid $500 in advance
for his daughter to be groomed.
So we know cash is gonna go up,
so we know we're going to debit cash.
But wait a minute.
We're being paid in advance
for something we haven't done yet.
What do we call that?
That's called "unearned revenue."
It's the only liability that we deal with
that does not have the word "payable" in it.
So unearned revenue is a liability,
and we have an obligation to perform that service later.
On December 20th, we paid our employee again.
Must've got behind and getting caught up--125,
and we credit cash 125.
And then, the very last entry is on December 24th,
we paid dividends of 75.
So we debit dividends... for 75...
and we credit cash for 75.
The next thing that we need to do
is post all of these entries to the T-accounts,
so I suggest that you draw up the T-accounts,
put in the normal balances, and then come back.
So go ahead and pause the video.