DEPRECIATION BASICS! With Journal Entries

In this video you'll learn how Depreciation works in Accounting. We'll work through a Straight Line Depreciation example and explore the Journal Entries that need to be posted. Others depreciation methods include...

This episode of Accounting Stuff is part of a mini-series on Depreciation in Accounting. You can find the link to the whole playlist here ⬇️

⏱️TIMESTAMPS
00:00 - Intro
00:29 - What is Depreciation?
01:09 - Why do we Depreciate?
01:11 - Accrual Method of Accounting
01:43 - Adjusting Entries Definition
02:03 - How does Depreciation work?
02:21 - Capitalization Definition
02:43 - Depreciation Methods
03:39 - Depreciation Schedule
04:01 - How to record Depreciation using Journal Entries
04:05 - Journal Entry Definition
04:11 - DEALER (Accounting Acronym)
04:43 - How to Capitalize an Asset
06:28 - How to Record a Depreciation Expense using Journal Entries
08:03 - Contra Asset Definition
10:36 - Clearing Journal Entry

🔝 CLOUD ACCOUNTING SOFTWARE

🔎FAQ

🚶FOLLOW ME ON

🎬LEARN ACCOUNTING BASICS FOR FREE
________________________
DISCLAIMER

Some of the links above are affiliate links, where I earn a small commission if you click on the link and purchase an item. You are not obligated to do so, but it does help fund these videos in hopes of bringing value to you!
________________________

#accounting #accountingbasics #accountingstuff

[AccountingStuff]

What should we cover next??

TIMESTAMPS
00:00 - Intro
00:29 - What is Depreciation?
01:09 - Why do we Depreciate?
01:11 - Accrual Method of Accounting
01:43 - Adjusting Entries Definition
02:03 - How does Depreciation work?
02:21 - Capitalization Definition
02:43 - Depreciation Methods
03:39 - Depreciation Schedule
04:01 - How to record Depreciation using Journal Entries
04:05 - Journal Entry Definition
04:11 - DEALER (Accounting Acronym)
04:43 - How to Capitalize an Asset
06:28 - How to Record a Depreciation Expense using Journal Entries
08:03 - Contra Asset Definition
10:36 - Clearing Journal Entry

[bman]

Sitting in college for 4 years and I've learned more in 2 videos than my entire time here. I am almost positive they over complicate text books.

[mo-juzk]

Hey man, i just wanted to say thank you, REALLY. i passed my exams while i was really late in my revisions thanks to your videos.

[blast]

This is probably the best intro on Youtube I've ever seen

[a_la_mads]

Is it just me or does Accounting make more sense when explained in an English accent.... lol fr thx for sharing these informative & concise vids

[aarontaylor]

Be honest who has told their professors that YT- James, Accounting Stuff content had help them to better understand accounting than their confusing course materials? ✋

[mulalondadza]

You are one of the best accounting tutor ive seen in YouTube.... mostly due to the amount of work u put in your videos, i know it takes a lot of hours just for 5 minutes video with that i truly appreciate your THANK YOU SO MACH 🙂🙂🙂🙂🙂🙂🙂🙂I TRULY ENJOY ALL YOUR VIDEOS...

[jennymulhall]

I’m about to sit my first year financial accounting exams in two weeks and your videos and cheat sheets have really helped me wrap my head around some really complex (to me, anyway) accounting concepts. Thank you very, very much, James! ❤️

[willjackson]

Dude I appreciate you making these so much man. Phenomenal pace, enunciation, simple explanation, appreciated hours of editing (I can tell, mate :)) and this is so helpful for my class. You are a blessing thank You so much

[amandajennings]

Yes please, cover P&L on disposal of assets...that would be really helpful to me. Thank you!!

[dhirajshetty]

it took me 3 days to fathom on my own what you sorted out in 11.23 mins ! thank you for the superb video ! for an Audio Visual learner like me your videos are a Godsend !

could you please teach us Disposal accounts too !

[manochasurbhi]

Hey James, I am from a non-commerce background and going to start my MBA soon :) All your videos are super helpful and clear ! Hats off. As a suggestion-Could you please cover the topic of 'Bad Debt Expense' - How to set up allowances, effect on both sides of balance sheet, how to write off, etc.

[piyushmisra]

I'm trying to clear CPA 5 years after finishing college. My current job has very little to do with accountancy. I had to start from the very beginning and I fortunately found your channel! You have no idea how useful and just fun these videos are to me :) Many thanks!

[maverickacres]

I just found your channel and I'm about binge watch like I did the Walking Dead. Your videos are clear and well organized, and time stamps too. Wish I found this years ago.

[medinalunger]

Please cover Gains/Loss that would be amazing!! Your videos help me out a lot and my classmates. Especially since we are all working online now instead of in school setting. Your breakdowns are awesome.

Would you consider adding to depreciation series by adding something about when estimated depreciation changes after a year or two within the useful life and needs to be accounted for?

[simmisgeorge]

Such brilliant attention grabbing organised way of explaining things. I'm a 20 year veteran of accounting and a professional but I enjoy watching these videos on basics of accounting

[chrisrobbins]

These videos are so good that it’s making me interested in accounting as a non-accountant. That’s very powerful. Great job mate.

[bedokhaled]

A video about the different branches of accounting and the objectives of each one please, will be super helpful

[catiagm]

Watching your video I realise how useless and complicated my accountancy books are. You make it so simple and easy to follow and by the end of the video I totally understand what depreciation is and the journals. You are amazing! You gained a new subscriber! Carry on like this as you are doing a great job and thank you very much!

[europa]

I am very thankful to you. I am from India and preparing Chartered accountancy course. I found your videos very helpful in understanding basic concepts of accounting.