Jacksonville CPA | Achieving Your Financial Goals
So my name is Brandon Mcelroy and I’m president of Minerva, a Jacksonville based tax and accounting firm. So if you’re, the Jacksonville CPA is not helping you meet your financial needs if they’re not giving you the information that you need to achieve your financial goals, if they are not regularly meeting with you and planning than you need to give the a call. There are so many Jacksonville cpas out there, but there are only a few that are going to give you the information you need to grow your business and, um, the information you need to to not pay more in taxes than you need to. So, um, please, please, please give us a call today. We’re listening to a accounting lecture. We’re just trying to educate our clients on the different things that they need to know. I’m getting familiar with the accounting terms and the financial statements, um, and how they work. So you don’t need to be an expert, but you do need to understand these things in a basic way. So without any further ado, let’s get into it.
If you owe $500 on your credit card on December 31st, well guess what, you still owe $500 on January first. The next day. He’s a liability is a permanent account and stockholders’ equity accounts, common stock and retained earnings are prominent accounts. We’ve taken revenues, expenses, and dividends. We’ve put them into their final home retained earnings. We then set revenues, expenses, and dividends back to zero when again, we’ll look at this in a future lecture and now they are in their final place. Retained earnings. Now, I’m sorry, I put a separate 31st year. I met a June 30th.
Okay. On July first, which is the next month. My beginning retained earnings will be 1300, so last period’s ending. Retained earnings becomes the following periods, July, in this case, beginning retained earnings. We’re now going to prepare our balance sheet. We have the income statement and retained earnings and now we’re going to prepare our balance sheet. Okay. I’m gonna switch to the document camera and we’re going to take the information from our example and we’re going to build a balance sheet. Okay, so a, B, c company, June 30th, end of the period balance sheet. Okay. Again, here’s our headache. My hands on the left, we’ll have our assets. We have tash 4,600. We have accounts receivable, which I’m going to abbreviate ar for accounts receivable. That’s $4,000. Supplies 2,400 and equipment. I’m going to abbreviate again, I’m gonna. Simply say equipment or equipment, 29,000. This gives us.
So just going through the different items on how to build a balance sheet and income statement. So some, some of you may already know this information somewhere, so we’re trying to do is just get you familiar, educate our clients. So if you’re Jacksonville CPA is not giving you this information or if you um, your Jacksonville CPA is just focusing on compliance work and they are educating you but they are not helping you grow your business, then please give them a call.
Total assets and that comes to $40,000. And I’m going to double underscore it on my first list. My liabilities. I have notes payable for 12,000 and I have accounts payable for $500. Total liabilities is 12,500. And then I have stockholders equity. Now they said on June first the company started with an investment in 26,200 and cash. That would be my common stock or capital stock. Same thing. Twenty nine, excuse me, 26,000 and I have retained earnings of 1300 and that number I’ll put a star next to it. That came from my retained earnings statement. Okay, so stock holders Equity Equals Twenty 7,500 and total liabilities plus stockholders’ equity equals 12,500 plus twenty seven thousand five hundred forty thousand dollars. Hopefully you can see that. Okay, now I’m going to come over here to the the white board and we have all three financial statements. Now together we prepare the income statement for.
So if your Jacksonville CPA is not giving you the information you need to succeed and please give my neighbor or coal
revenues. And if we had more than one revenue account, we would simply put service, revenue, sales, revenue, interest, revenue. Put our revenues together and then I’ll put total revenue. 40,000. Hopefully you can see that. Okay. Now I’m going to come over here to the whiteboard and we have all three financial statements. Now together we prepare the income statement first revenues, and if we had more than one revenue account, we would simply put service, revenue, sales, revenue, interest, revenue, put all revenues together and then I’ll put total all my expenses and if you want to put total expenses, that’s good. That’s fine. Okay. Revenues minus expenses then gives us net income. We have some flexibility in the early stages here in terms of how we present the information. As we get further into the course, we’re going to tighten things up a little bit and we’ll follow more specific rules, but right now our primary objective is to get you familiar with the concept of the income statement as being a measure of the company’s performance for the time period. We take net income and when we prepare our retained earnings statement, this shows the change in value in equity due to the operations of the business. Hopefully the profitability of the business, increasing the equity, which of course is the owner’s claim to the assets. This is how wealth growth in a business through the retained earnings account. They make the initial investment.
So if your Jacksonville CPA is not helping you grow your business and retain wealth, then please give me a call.