CLOSING ENTRIES: Everything You Need To Know

In this video you'll learn what Closing Entries mean and I'll show you how they work using an example. We'll cover the differences between Temporary and Permanent Accounts, and a trick to remember which accounts fall into each category. You'll also see how to post Closing Entries in two different ways: the Long Way and the Short Way.

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⏱️TIMESTAMPS
00:00 - Intro
00:20 - The Accounting Cycle
00:41 - Closing Entries Definition
01:09 - How to Remember Permanent and Temporary Accounts (RED ALE)
02:13 - Permanent Account Definition
02:27 - Temporary Account Definition
02:54 - Opening Trial Balance
03:16 - Example
04:05 - Adjusted Trial Balance
04:49 - Creating Financial Statements
05:46 - How to Post Closing Entries
05:55 - Long Way: Step 1
07:34 - Long Way: Step 2
09:08 - Long Way: Step 3
10:09 - Long Way: Step 4
11:15 - Post Closing Trial Balance
11:39 - Short Way
12:34 - Recap: How to Post Closing Entries
03:37 - Outro

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DISCLAIMER

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#accounting #financialstatements #accountingstuff

[AccountingStuff]

Happy Holidays! Here are the timestamps...

00:00 - Intro
00:20 - The Accounting Cycle
00:41 - Closing Entries Definition
01:09 - How to Remember Permanent and Temporary Accounts (RED ALE)
02:13 - Permanent Account Definition
02:27 - Temporary Account Definition
02:54 - Opening Trial Balance
03:16 - Example
04:05 - Adjusted Trial Balance
04:49 - Creating Financial Statements
05:46 - How to Post Closing Entries
05:55 - Long Way: Step 1
07:34 - Long Way: Step 2
09:08 - Long Way: Step 3
10:09 - Long Way: Step 4
11:15 - Post Closing Trial Balance
11:39 - Short Way
12:34 - Recap: How to Post Closing Entries
03:37 - Outro

[LazarusStirs]

I went through my whole 4 year degree in accounting never really understanding this. My Professors and text book were awful. And here in a single video, less than 14 minutes in length, I not only understand it, but it seems very logical. Seriously, amazing videos. Really appreciated. Thank you!

[dreaming]

You’re genuinely the reason why I understanding anything this semester, man, you make this a lot less stressful because you explain it in such a simple way. Much ^^

[varunalur]

The talent required to explain these concepts in such a simple way is outstanding. I saved 3-4 hours of work by watching a 14 minute video of yours. Thanks so much man

[austinmpandawana]

Hi James, I am just writing to say a big thank you for all the videos and tutorials. I had failed my accounts module for my law degree three times but the moment I got your content, it was like a light bulb switched on. Got my results two weeks ago and I passed!!! Thank you man, will refer anyone who ever needs help. God bless you!

[josephjoestar]

Just wanted to thank you so much for making these videos. I really appreciate the time and effort you put into making them not only informative but entertaining as well. You're hilarious man, absolutely love the content. You're a godsend to accounting majors and other people who want to learn about accountancy.

[keerthanavk]

This guy literally makes time to answer to the questions in the comments, that shows how dedicated he is & his motive is to educate others well. Thanks a lot sir. You are truly a blessing for us, accounts has become easier cuz of u. Love from India 😊✨

[At.home.in.the.catacombs]

I seriously cannot state enough my love for this channel. Every video hs helped me along in my accounting class. My professor doesn't respond to questions and her lectures are confusing. The mnemonics in these videos are so good.

[tinatinainaustralia]

You are the best accounting teacher I have ever met!!!

[heathhanz]

I've been stressing so much in my online accounting classes, feeling like I'm not getting the in-person experience I need to grasp the concepts. Yet, since your videos, I feel I may not only pass, but excel! Can't thank you enough for your brilliance. All hail YouTube!

[mohamedgamal]

Entertaining & educating at the same time ... you are a genius!

[hannahaguilar]

I've made it this far. Thanks to you, I'm not giving up.

[juliosonth]

James, thank you for showing the long way first. When I train a new employee I always show them the long way first. And, then after a couple of weeks I show the short way. Not understanding the process does not help the employee or the business in the long run. I finally understand closing entries! Kudos to your teaching style!

[labcdel]

Damn I wish you were my professor for intermediate accounting :/

[FriggenPaul]

This account is gold. Engaging and easy to follow examples. Accounting is easyto just memorize and dump but this helps me understand whats really happening

[epicapple]

You are truly a blessing G. My teacher cannot even come close to teaching me these topics, but with your videos I get it shortly. Thanks man you're a good guy!!!

[HealBILY]

Thank you James, these videos are still helping people. Im a new small business owner starting from scratch in bookkeeping. I had no idea where to start and found your videos. I now feel comfortable enough to start learning QuickBooks and launch my business. Thank you 🙏

[alienorkajdas]

Just wanted to thank you for what you do! I've spent 5 hours trying to understand closing entries for my accounting final and I understood everything with you in just 14 minutes!! I just discovered your channel and I'm definitely going to keep watching your videos :)

[danclarke]

Great mnemonics, clarity of thought, structure and presentation. You're a credit to accounting.

[AccountingBro]

I run an Accounting youtube channel in Sri Lanka. I try to be like you. I really like your video qulitiy, learning methods. I will buy equipment someday to repair the qulitiy. You are my hero, teacher, brother.🖤