15 minutes literally that's all you need to build an impressive physique I'm not making this up if you do it right you can train as little as 15 minutes a day build muscle build strength and look impressive in fact we did it ourselves we tested it ourselves now there is a right way to do it and that's what we're gonna talk about in today's episode but yes 15 minutes is enough to build an impressive physique wasn't it Arnold who was famous for saying that he could come in and do one set of an exercise and it'd be more affected than someone spending like an hour in there yeah most people in the gym doing an hour yeah now is that what he used to say yeah now I think with that the problem with that quote is that it kind of makes people think it's all about intensity so it's like oh I'm only gonna do one set so let me just kill myself efficiency yeah do you think that that's all do you think that I don't think that's all he meant by that I don't think so either but I think people yeah that's a good point he knows what he's doing too which is a major factor yeah I think the important thing to understand as we get into this topic is the first off we have to understand the true value of exercise right the true value of workouts people confuse what happens during the workout with the beneficial valuable goals that they get from the workout itself so while you're working out you're burning more calories you're sweating you know all that stuff's happening and we tend to place all the value on that so a short workout is not valuable because what could I possibly how many calories could I burn in 15 minutes not that much which is true but that's actually not the value at all the value is in the adaptation that the workout itself elicits the workout itself stimulates an adaptation so the question really is can you send the right signal for adaptation in just 15 minutes and then when you ask it that way the answer is yes you absolutely can in fact you can ask any fitness coach who's been doing this for a long time and the answer yes so that's the way you should ask the question I think that poses at the right well it's really the difference between training and exercise right exercise is just the idea of going moving is moving and burning calories right and and that concept is pretty pretty basic pretty easy in almost anybody can do it in any order any fashion but to move your body make it change change your body composition build muscle burn body fat sculpt your physique increase performance require some level of understanding of training otherwise you're just going to the gym and you're just exercising and something that is programmed really well can be extremely effective and it's not about the the time that you spend in the gym as it is how effective is the single movement or singled the or the few movements you are doing in that short period of time right it's all about stimulus how can I send the right signal to my body create the right environment so that signal then tells my body to change in the ways that I want it's not about the damage that I create now there is some damage there's some stress that happens from from working out and training and that does send some of the signal but it's not all of it it's not even close to all of it it's really all about the stimulus how can I get my body to hear this and then respond and adapt and change and the way they don't want and here's your evidence by the way if it was only about damage and sweating and burning calories it would be easy actually that it would be super easy all you would have to do is go to the gym and get sore and tired do hard stuff and it wouldn't matter in fact you wouldn't have to go to the gym you could just in your living room and it wouldn't even matter and it's funny a lot of people think that they think that the that if they just did that and they just did it long enough that they would get results but people who've tried that will tell you it doesn't work that way you get something and then your body stops progressing and then you're on the slippery slope of doing more to get less more to get less and nothing happens then you end up going backwards when you do it right the right formula the right application the right stimulus you work with your body you're actually figured out how to get your body to change the way you want and again 15 minutes done the right way can do that it's it's enough time to do that well I mean this is somewhat related but I remember when I was trying to develop this product for isometric training and like realizing that you know the actual effort that people are outputting a lot of times doesn't even get captured like so you can't really see that as much in terms of like you can see that with weight moving and see that with obviously form and somewhat of their intention but like in terms of like turning that into adding more muscular tension recruiting more muscle fibers like you that's that's all unseen that is all completely intrinsic and that's another way to maximize whatever the heck it is that you're doing if you're setting your body up in good postural position I'm isolating a muscle if that's my goal or I'm like really trying to intensify that specific exercise without adding a lot of like excess load and that's gonna like you know damage it further like I'm just like producing more of that force output like that totally transforms the exercise just that alone yeah you're talking about doing it right doing it the right way you know one of my favorite categories of clients to train and I'm sure you guys felt the same way when you would get that client who's been working out for a while his works out all the time can't figure out why they can't lose that 20 pounds can't figure out why the body isn't changing and you get them and then you look at the workout and what they're doing and you know oh wow like they're already showing up all I gotta do is move a few pieces maybe have them do less of this more of that and it's gonna blow the frickin minds and I would do that and Doug is an example that when Doug hired me he reduced his his load I reduced his load and trained him properly I gave him good programming and I explained this concept to him about sending the signal and again luckily I'm convincing because I convinced him to trust me and Doug who'd been working out for years and years and years all who thought he had the worst genetics his body wouldn't respond all of a sudden he achieved this incredible physique and he worked out like two or three days a week with me and it was all because we did it the right way I really feel like I could split my all my clients into two buckets you were either the client who fit in the bucket of struggled with consistency and discipline and never you know even strong three months of you know good not even great just good eating habits and consistent training or you were the other side who have tried everything you tried all the supplements you've followed all the magazine plans and every diet and you like working out and you can you know how to push yourself there like literally there was like this clear divide you felt you could have I could put almost every client in one bucket at the other and the ones that were in the I'm frustrated I've tried all these different things most of them were over just overdoing it overdoing it in the sense of everything there they had their sleep was off because they're stressed they go go-getters at work all the time they their training intensity is off their volume in there and training is off like their balance of nutrition to their what was off and so more often than not scaling those people back ended up producing more results now granted having the right balance nutrition I think makes a huge difference but there was this clear divide in my in my clientele that I could fit you in one of those two buckets I remember you ever play a game at like modern arcades have these games now where you win tickets right so when we were kids it was all video games now it's like half it's like you can win tickets or something there's this one where it's this big rotating wheel and you have to crank down on this this crank and it spins the wheel and if you hit the right pressure you get the jackpot if you go too little it's like one ticket if you go just a little too hard it's one ticket literally you have to hit the perfect pressure to like the prices right yes and I've seen that once the boardwalk this is exactly what it's like with training if you hit it the right way jackpot yeah too little nothing sweet spot too much nothing you and so so how do you know what the right spot is while you start to understand exercise programming you had to act just understand how to apply intensity etc etc all right today's giveaway maps 15 that's the program we talk about in today's episode I'll give it away to one you okay so here's what you do leave a comment below this video in the first 24 hours we drop it subscribe to this channel and turn on notifications if you win we'll let you know in the comment section everyone else in today's episode we talk about how you can make incredible gains working out just 15 to 20 minutes a day by the way maps 15 minutes comes with two versions it comes with a convenient suspension trainer version but then it has an advanced barbell version where you're doing these compound lifts anyway if you're interested in the program go to mapsfitnessproducts.com and then use the code MFP 15 that'll give you 50% off maps 15 for this episode all right back to the show but the starting point is this the starting point is understanding when you go into the gym or you're picking up a dumbbell or barbell or doing an exercise the idea is I'm sending a signal what's gonna send the right signal and am I going to overdo it so that my body can't adapt am I gonna underdo it so my body doesn't get the message what signal my sending is this gonna be effective or am I just here trying to sweat if you're just there trying to sweat well then then it doesn't matter what you do just sweat if you're there to get your body to change and you really want to see consistent change in a way that's maintainable or sustainable then you want to do it the right way well it's funny because if you think about any other like program that's tried to attempt to like condense a workout down to like you know something like 15 minutes or 10 minutes or whatever like what do they do yeah cut the record making the hardest like craziest like burpee loaded yeah weight loaded type of a workout you could possibly have to where it like destroys you like in like a short amount of time meanwhile what's that gonna look like for your next workout that you have lined up you know tomorrow yeah so it's just the intensity is just one of those things that has just been like buried down people's throats that that's the answer if you have to like you know be reasonable and judicious with your time yeah no the reason why that is is because the average consumer can't understand how I can do in a workout that's effective in a quarter of the time so if you beat the crap out of them now it makes sense to them like oh okay I see why this feels like they did something yeah wow I did 10 minutes but oh my god I almost died like that makes sense as to why it doesn't work that way intensity is a is a factor but it's it's part of the formula it's like eggs in a cake like you're like oh eggs are important so let's just put a bunch of eggs in a pan we're not gonna have a cake now just have an omelet so that's intensity frequency volume tempo like all these factors play a role and if you do it right you don't need much no it really does work the right the right amount is the least amount to elicit the most change that's it that's the right amount and the in the the positive part about that this way to tell people that are just getting started that's exciting is guess what because you haven't done shit it's gonna take very little take as much to elicit change because you haven't been doing anything for six months a year two years three years the beautiful thing is we're gonna make a few subtle changes in the right direction nutritionally we're gonna make a few subtle changes in in exercise and training and movement and you're gonna see change and the goal is to just stay ahead of that that plateau curve right like we're gonna add just a little bit watch your body start to change stay there for a little bit of time and then right before you start to plateau add a little bit more change up a little bit and the goal is for me to do just a little bit more and keep you progressing all the way through right so okay so someone might be like okay well are there studies on exercise to show if there's one form of programming superior to another and in there are yes there's lots of studies and they can be pretty illuminating one thing that they've studied that's pretty cool is that when the total volume of your training is equated for now there's there's gonna be some extreme outliers here well this won't work but generally speaking when your total volume is equated for then it doesn't matter if you do let's say two one hour workouts a week or 15 minutes every day I don't know what 15 times seven is but I think it comes out to roughly two hours a week or something like that right so 105 something like that right so essentially maybe not make it essentially if you did the same total time same total volume set weight you know reps everything equal except here you did it all in one or two days or and here you did a little bit every day what they show is that the the it doesn't matter that the total volume really is what matters now where it starts to change a little bit is if you're doing too much in one day fatigue sets in stuff like that but old but basically it's like this like okay so if I hit my chest three days a week or if I hit my chest once a week which one gives me better results if everything's equal doesn't matter really the studies show that it kind of doesn't matter it's all about the total amount of volume so could you get good results doing 15 to 20 minutes a day well add it up add it up what's what's the mass to the minute what's that what's that up to 20 minutes a day 70s 140 minutes a week that's over two hours a week of exercise could you get good results with just two hours of good strength training you could so it's it's the same thing now there's a bit of a flaw in that study because like every study what's taken over the course of six to 16 weeks probably in a small frame there and the one the thing that it's not accounting for where the 15 minute workout is superior is that person who practiced chest once for the week gets practiced the bench press one time that week the person does 15 minutes and they do the same amount of sets but now it's spread out over Monday Wednesday Friday now gets to practice bench press three times and the compounding effect of practicing practicing that movement more times in a week over the course of months over the course of years makes you better at that movement making you better at a move more reps means you get more out of the exercise getting more out of the exercise equals more results yeah so let's back up for a second so I said I mentioned fatigue so one of the the biggest enemy towards building strength and muscle all things being equal as fatigue this is why you do sets with strength training and muscle building this is why this isn't why you you grab dumbbells and barbells and don't rest if I just go from exercise exercise exercise and just do rep reps reps reps with no rest I'm not gonna build muscle or strength I'm just doing cardio what makes strength training strength training is you train within a particular framework of fatigue and then you rest and then you repeat you do sets that's clearly the biggest difference between strength training and not strength training even if you use the same equipment so fatigue is the enemy of strength building and muscle building okay if we go back to the example of doing all of your chest workout and one workout versus spreading it out here's what ends up happening by the time you get through halfway of your chest workout fatigue is there yeah fatigue set in so it's not just that you're practicing more by dividing it and spreading out through the whole week Adam it's that you're practicing better right there's practice what's that what's that saying in sports like practice makes perfect perfect practice makes perfect something more something like that like practice the way you practice how you play right if you could take fatigue out of the formula then your practice is better the way you perform the exercise is better so it technically is better to do instead of doing nine sets of bench press on one day to do three sets three days a week there's as you're teaching your body that movement and it's it's intended function and it's highest like level so it's it's your you want to always like address it like this is what now I'm setting the standard for in terms of like you know how my body is going to respond and react so yeah to be able to like take the fatigue element out that's that's really where form and in terms of like force production and being able to like generate the kind of strength like you start losing that ability then you know you're you're still teaching your body those with those reps so if you eliminate that part you just keep the good reps it just compiles in a good you know direction I also think that the the volume doesn't normally stay the same either and though I speculated with you guys the other day when we discussed this topic great point is that you know volume is sets times weight times reps right or you need any way in that order right it's basically multiplying all that together so if you take somebody who bench presses say a total of 15 sets in a week of bench press and they now divide it over you know three days what in what ends up happening is you have the ability just to put more weight on the bar because you're fresh each time you go to bench press versus all one day yeah all one day by time I get to sets 10 11 12 on chest your volume went down way down I'm way weaker everybody knows that right so if you actually take that's that same person and you now divide it up over three now all the studies they want to they wanted to measure volume being equated the same so they had to adjust for that and what we've learned from the studies is that there's no one better than the other but when you add in the element that do you really think you're as strong and you think that you would not put naturally just oh how many times are you going to bitch press like oh I feel good today so you add another five or ten pounds that's happening when you spread that out how it works in the real world yes when you know very few people are actually diligently tracking their volume I can only do this many reps that's right that's what you do as many reps as you can do with good form and if you're if you're doing this exercise broken up over the week versus all one you're gonna do more volume for sure because you're fresh 100 so I think that people are also you know not considering that that the volume probably isn't going to be quite and I know that's the they intentionally do that for the studies just to prove the point of you know three times a week once a week or twice a week it's you know splitting hairs which one's better but the truth is you're getting more practice which was the point I was trying to make and I know you have on your notes to make and then on top of that you probably actually add more volume so which is why we're seeing so many people that have been lifting for a long time that have gone through like math 15 and they're going like what the hell I'm seeing PRs or I'm seeing better results I've been training for a long time an advanced lifter but I think these are some of the factors that people aren't thinking about I hit a PR when we created the program you were following it you were getting great results I did like the 20 25 minute version so more advanced like barbell stuff and I hit a PR in a deadlift that I hadn't hit numbers even close to that until like maybe 10 years prior and it worked out less from doing something like that so it definitely works you know I was thinking in terms of like a parallel there when somebody switches over from always doing higher reps with like crazy fatigue to then doing like low reps where they have to rest you know I noticed the dramatic you know shift and where they're like wow I you know I can keep loading more weight and it's like this phenomenon for them because like literally you're just taking out what normally you'd work through fatigue and you're just like hyper focused on like performing that specific exercise at its it's like peak level yeah and there's also like the practice element there's another part of practice with exercise which we forget that exercises are skills so the more often you squat the better you get at the squat the better you get at the squat the more results you can derive from the squat so the better you are at exercises in terms of control and stability and range of motion and connection the more you'll get out of them well you know again if you did 15 sets of squats in one day how are you going to be practicing that skill by the time you get to set 10 now you're just fatigued it's all about just hammering your quads and your glutes and you're trying to get it through it right but what if you did I don't know two sets a day you know one day you did three sets every day you practice it every day every set you would look good every set because you're fresh you practice you would develop a skill of squatting much faster and much better thus deriving more benefit from this amazing exercise well and this is really what I what I took away from that statement from yeah Arnold was that that he has practiced the these exercises so so many times so many different ways that he can go in and make it more effective and maybe intensity is part of that formula too that he knows how to to drive more intensity from the lift but more importantly I think he understands how to do the lift better and that's what we were all the results set up his body and adjust things like right on the fly like immediately and just like get into it versus somebody that's gonna it's gonna take a while for them to kind of get their body ready and adjusted to be able to kind of like produce that type of a optimal lift right the other thing is that and this is not a this is nowhere near controversial some exercises are just more effective than others just bottom line like a good you know three sets of a barbell squat okay is going to be more effective for muscle and strength and performance then 15 isolation exercises combined working the same muscles quads hamstrings glutes abductors abductors all these isolation movements for example all of them 15 sets versus three of just barbell squats the barbell squats will get you there faster and better because it's so much more effective well there's exercises especially in the bodybuilding world that are known as finishers quote unquote finishers these are movements that are saved for the end of the workout mainly because they they're so fatigued at the end of the workout yeah they're easy stuff yeah it's like table flies and yeah it's all these exercises that like oh i'm so fatigued but this i can squeeze out um you know two more sets or three more sets of these other movements well when you work out a little every day versus a lot sometimes you're it's easier to do the better exercises the more effective ones i can squat three sets every day right i could not do 14 sets of squats in one day i could try but halfway through they're gonna suck so what would i do for my legs if i did all those sets in one day it was probably gonna look more like five sets of squats and then leg extensions and leg curls and all these other movements because i'm so fatigued well um you're able to do more of the effective exercises by doing short frequent workouts than you are versus doing longer less frequent workouts again back to the fatigue well and there's there's a behavior angle here too right that the studies aren't going to show this right they're gonna they're going to try and compare the exercises and things like that and we already know that the squats superior than that but the behavioral part that people don't realize is that because you're only going in to do two or three movements you naturally are going to pick the bigger bang for your banger of course the reason why you pick the cable fly peck deck or the side chest press hammer strength is because you already did incline bench you already did flat dumbbell you already you already did all the bangers and so now you're like i'm fatigued i did all these things now what else can i do to finish my 15 sets of chests that i'm doing today and so you go to these you know lesser exercises that aren't giving the same results now if you go to the gym and you're like hey i'm only doing three sets of chest you're gonna go sideways hammer strength machine like if you are your idiot yeah but you'd be silly to do that you're gonna go do one of the bangers and you're gonna be fresh and you're gonna get more out of it so there's a there's a behavioral component that you're getting here too by doing that is that listen i only got to pick two exercises well what am i going to pick i know i've heard a million times the the top five movements i'm going to pick one of those that's right and that's going to be part of my workout well that there's a great benefit to that because you choose those better exercise every time you get better results that's right the other part too is where people will make the argument like well yeah but you're not burning many calories okay listen the worst possible gauge of success of your workouts is how many calories you burn while you workout first of all it's not substantial anyway go beat yourself up for an hour yeah all those calories is nothing compared to how easy to eat them anyway number two the calories you burn while moving your body very quickly figures out how to burn less calories to make up for very quickly and there's lots of studies on this just studies that show your behaviors are modified without you realizing it so you end up moving less there's studies that show your body just becomes more efficient with calorie storing your body will pair muscle down to make you lose uh to to slow down your metabolism literally the calories you burn while you move are inconsequential now i'm not saying moving isn't healthy it's always good to move moving is better than not moving if it's appropriate but in terms of like fat loss and i got to burn this that is a complete waste of time stop focusing on that instead look at how you can speed up your metabolism and that's a much more effective way at looking at calorie burn how many calories can my body burn on its own and how can i make that happen uh in a hotter way uh more often how can i make my body one of more calories by itself well that we've talked about that at nauseam on the podcast it's building muscle build muscle that's the way to do it but here's the part when it comes to getting lean it's almost always about your diet speed up your metabolism and then look at your diet you're not going to lose weight by trying to burn the calories off through exercise period end of story that's a terrible stride i mean and this is a good opportunity to talk about because probably one of our most popular questions is you know is this program for fat loss is this program for you know like people your diet determines yeah what when when should i reduce my calories or what am i supposed to be in a calorie surplus or a deficit in this program well it depends on your goal every every program that we write is ideal for building muscle and ideal for burning body fat and how you eat accordingly will dictate that that's it so if your main focus is i want to get shredded and i want to lean and then i'm only gonna be training 15 20 minutes okay that's fine then eat in a caloric deficit while you train a 15 to 20 minute workout and you're gonna get lean and shredded by doing that if your main goal is to build muscle and you only got 15 20 minutes workout then okay then eat in a caloric surplus and that's gonna do it if you're looking for overall this health and balance and you feel pretty good body fat percentage wise then undulate your calories sometimes be in a surplus sometimes be in a deficit now here's the last thing i'll say this isn't necessary this is a point i think that should be made is that the biggest enemy for most people like i say the biggest stumbling block for most people when it comes to getting sustainable results is consistency it's just really hard for people to be consistent yeah on a regular basis it's much easier to be consistent if you do a little every day than it is to do a lot sometimes it's just a fact it's harder to take an hour out of your day two or three days a week than it is to take 15 to 25 minutes out of your day every single day it's easy it becomes a routine easier or faster you build the skill of discipline easier you don't have to take aside as much time and schedule it's like oh 20 minutes that happens on accident sometimes let's make it happen in our experiences coaches and trainers that was the go-to strategy for someone with consistency issues people think oh they have issues being consistent make them work out less often no no make them work out way more often just make the workouts really short that improves consistency uh hands on there's a an interesting opponent to that too and you stop before like you get like super fatigued and like overwhelmed in terms of like the training session like what that does in terms of like there's all of that like energy that now fuels you going into the next day it's almost like it's a catalyst for now i get this like energy momentum that that that swing that kind of goes into you know the following day and then this is something that you can just slowly kind of build upon versus something that's just debilitating right i'm like i'm trying to take it all on at once and i'm just hammering my body because i'm like so far behind and whatever you know you tell yourself but now it's like i can barely move you know i'm i'm sore i'm hurting like there's just like a psychological component to that that's powerful so this might be a bit controversial for trainers because it doesn't fit well or serve their scheduling and doesn't serve them growing their business per se initially at least and that is if i could go back and do it all over again and i wasn't paid by the hourly session to train people this is how i would train almost every one of my clients at the beginning yeah it would be these 20 minute yep type of show up every day yeah show up every day just do one or two things that's it and then you know let's be consistent with that imagine how many people would have not quit i know and that's here that's building a ritual with that's the controversial and they would have loved it they would have felt good yes that's the controversial part here right because i think this is what best serves the client now that i understand this and i've been doing this long enough but i also recognize that that is really difficult to do from a business perspective for client for trainers who are getting billed by the hour to do this like 20 minute session for a client but the reality is this is what would serve the client the best is to get them started especially at the beginning okay even though we can talk all day about how there's plenty of advanced people i think that would serve them well to reduce their volume and actually train like this that for sure how everybody would start would be like this it would be literally one or two movements every single day until that becomes a habit like tying their shoe or brushing their teeth and then i would start to build on top of that until they get to a point where they look back and like holy shit i'm training the gym every day for 45-50 minutes and i absolutely love it and i've been crushing it so we have a program called maps 15 minutes that's all about this there's two versions in the program one of them uses a suspension trainer this is ideal for people who convenience is everything then there's a barbell version for advanced lifters that workout takes about 20 minutes here's what we're going to do with this episode that program we're going to make 50 off because of this episode so if you want to try this like workout a little every day versus what you may be doing now see how your body responds maps 15 minutes is half off here's how you can get it you go to mapsfitnessproducts.com and then use the coupon code mfp15 for the 50% off discount


Hello, welcome to this week's CMC Markets Commodity Snapshot with myself Jasper Lawler. This week we are focusing on what everyone's focusing on right now and that's crude oil. We've got the OPEC meeting coming up and the cartel is looking at cutting oil production. We have some interesting charts set up so we want to look at how prices are going to move going forward. So in past snapshots we've been talking about the changing dynamics in the oil market. We've increased supply in that the US now has a shale gas boom in which they're producing a lot more oil and conversely on the demand side China's economy is slowing as is the rest of the world so there's a supply, demand, misbalance and prices have been coming down and Brent crude has actually lost 35% since its highs this year. So that's obviously been a pretty steep decline in prices and so as an oil producing nation particularly these Gulf states that are members of OPEC they get the majority of their government coffers come through the oil revenue so they're taking a big hit right now so in this meeting they're deciding whether to cut production with the hope of addressing that supply side of the balance so as to push prices back up again and hopefully earn more money from selling their oil. So what are they going to do in this meeting? It looks like they're probably not going to cut production we've heard from the Saudi oil minister that he believes the market will stabilize in the near future and there was also a meeting held between Saudi Arabia, Russia, Venezuela and Mexico in which they announced no cut in production they're all big oil producing countries. No cut from them puts the impetus onto OPEC but the general feeling is that probably OPEC aren't going to cut. Why wouldn't they? It's because OPEC's a cartel and a cartel only really works when you control the majority of the market because of the boom in the US they don't control the majority of the market. The US and Russia are two of the largest world producers of oil now and the OPEC countries just don't have the sway they once did. So what can we expect out of this meeting? Let's just look at the scenario if they did do a cut that's not the general market expectation so I think we probably could expect a jump in oil prices in the Brent and the WTI contract were they to cut production? The trouble with that move is as I mentioned longer term even if OPEC countries are cutting production the US and Russia may just increase production so the supply demand dynamics in the market would probably remain and we could still be facing downward pressure on oil prices eventually. So what if they don't cut production? The default assumption is that prices should drop because they're not intervening to proper prices but if we look at the dynamics of the market the market is down 35% in the Brent contract as we mentioned and if you look at the CFTC cot data which tells us the positioning in the futures and options market it just tells us that the market is very short oil right now so if it's very short I mean who left is there to sell more? So what we could see potentially is a sharp spike lower in prices should they fail to cut production but the smart money who's been short the market a long time may use this volatility to close out their short positions and so what we'll be looking at for the dynamics going forward is whether we can close below yesterday's close. If we can that could point to further prices lower if not that could see prices rally back up again. So let's just have a look at the chart for some specific price levels. Now what we're looking at here is a longer term chart of Brent Crudeau it's the weekly candlestick chart and you can see this sharp drop off which says the massive dropping prices that we saw in 2008 which in the steady rise in prices up to around $130 a barrel following that and you can see this last leg down as the price declines that we've seen this year. Now you can see that there are some lows below where we are right now which come in at around $71.25 would be the next level so that would be a level to look out should prices move lower but for me the big one is this $76.10 depending on where we close today after this meeting that should determine direction for prices in the near term. Okay that's it for this week's CMC markets commodity snapshot we were looking at Brent Crudeau the big thing is the OPEC meeting really what we want to see is how prices react to the announcement from the meeting. If they should decide not to cut as his consensus will prices continue to move down in this bearish market or will that be the trigger for a correction higher.


Hey there friends, how's it going? My name is Kevin, and I got a bit of a challenge here today because usually I feel like I'm up against it when I play games, you know, because of who I am as a person. But this game is called Good Company, which kind of hits me from two angles because I had a company before a shop that I had to sell, and also I've been told I'm not a very good company. Alright, I'd stop bringing up the potato famine if you knew more about it. Ah! Alright, let's get started. Okay, company name. The potato famine. We're coming back everyone! Oh Jesus, everyone Irish must hate me. Explains why there's very little people from Ireland who watch me. I guess their percentage is really small. What most looks like a potato? That? I guess. If only it was my brain. My brain resembles a potato, nice and smooth. That's a good logo. I'd enter the shop or warehouse or whatever it might be. My name will be potato. Is this just my way of saying I am hungry? Oh, I was about to say that I won't have any companion because, you know, that's fitting. But this guy's kind of cute. I don't think I can resist.  Every time I have an idea, it's usually a bad one, so that is pretty fitting. Good Lord, that potato is thick. I hope they don't charge by weight because that's enough to feed a whole family. What am I talking about? Kevin, stop talking. My person looks like they're wearing a disguise for some reason and how their sunburned. All right, let's go potato and bad ideas. It kind of makes sense because you get potato, you get bad ideas, potato famine. It all just makes sense. You've been hired by the federal bureau of industries to get the local economy back on track. Why did you hire me? I'm going to go work in my house now. This is where I'm going to start my business after the day to get the entire economy back on track. I'm like, I better start a home business. I can sell essential oils. Okay, I just ordered a load of this stuff. Thank you, employee. Who even are you? I'm firing you. I don't even remember hiring you, so you're gone. Goodbye. He's the first day of work. He just started unpacking stuff and I'm like, I don't like your body language. Uh-oh. I'm on the tutorial pair and I can't actually hire anyone, I don't think. Oh, no, wait, hold on. I got it. It's just going to cost me some money. I'll hire Jesus.  This should fix the local economy. I'm hiring everyone in town. I got just not even enough space for us here. I hope they aren't supposed to be social distancing in this game. All right, guys, get to work. They're like, what do we do here? That's not the point of this business. We're fixing the economy here. All right, what does the tutorial want me to do? A place to sell order for a case. Okay, hold on. There we go. Look, I'm selling this. Good job, everyone. We're making profits. Someone whispers to another employee, I don't think this guy knows what profit is. Look, there's a reason my store failed. Okay, we're learning that now. I've often blamed it on getting mowed down by a car, but that is just a small piece of the puzzle. You can see our history. Just takes a massive dive. Oh, no. Well, this is what the potato famine does. It's in the second name. All right, what's my next thing? Place a thank you table. I don't know if I have enough money. All right, we got another table. That means two of you can work at the same time. Why do you all have this Z thing over your head? You literally do not work. How are you tired? Oh my God, no. See the button in the top right-hand corner called quick hire. I don't think we want to do that. Oh, no, we've hired someone. Fantastic. Your first proper hire. Are you saying the rest weren't proper? How's everyone doing? You enjoying your first day on the job? Sorry about the lack of bathrooms. There's just so many of you. There didn't seem like there was any point because there'd be a queue out the door. Wait, am I still buying things? Oh no, I've been buying things constantly. My money is running out. Oh no. Oh no, no, no. All right, well buy more stuff. May as well go all in now. I need some of these to make batteries. Look how much plastic I've bought for no reason. I nearly have as much plastic as employees. That's saying something.  I'm here to fix the economy. Come here. I got some job opportunities in my van. You know what this reminds me of? That's sims online game where there was just lines and lines of table and people just grinding skills and me annoying them. Could you all please stop whistling trolls?  All right, there we go people. We have enough tables for nine of you. That leaves nearly half the workforce with a job. All right, I'm actually going to assign like all of these desks to be worked on to see if we can get out of this massive debt because I'm actually afraid of the potato famine right now and what's happening to them. Like I mean the company. As an Irish person, I am in constant fear of a potato famine. Oh no, they want me to place a different type of table. I didn't know there'd be more to this. Oh man. All right, hold on. I can place it here. It's just a little bit in the way. Yeah, we're going to make calculators. This is going to be awesome. We're going to have so many calculators. What do you need? Oh yeah, you need electronic parts. You can just make a calculator out of plastic. I mean you can, but it won't really help you. All right, electronic parts. Yeah, buy those. All right, we are flying high now. The potato famine is back and fiercer than ever. Wait, they're trying to make me make it myself. No, I don't want to. Someone else can make the calculator. That's why I'm the big boss man. God damn it, I'm trying to like spy on them to see if they're doing a good job.  Is my storage full? No, we're okay. Add a rule and we'll sell calculators. If you'll feck and make them, what's wrong with you? Oh, I need to do it myself.  Like what's the point in hiring 300 employees if I got to do it myself? I like how they brought me in to fix the economy in one afternoon. I'm minus 18 grand. Oh, I just fired someone by accident. Oh my God, now we're understaffed. What was that? Or are you trying to help me? Reducing their walk times. That's all right, they'll get around. It's not that big of a place.  Can I now make the thing? Why can I not make the thing? Oh, wait, I'm missing this, the LED array. Hold on. Is no one making the LED arrays? Hold on, let me, let me figure this out. But you're meant to be. Why are you not making it? God, we really are understaffed, aren't we? Can I need one plastic, one single cell battery, and an LED array? I've got them all. Yes, I'm making calculators. I like his arm movement. He's like, yeah, I'm just making calculators. Okay, guys, it's been hard work. We've wasted $24,000 and I've hired about 30 employees. But this is it. We're finally going into profit. I have made one calculator. Congratulations. Another company has dug itself out of a difficult situation. No, I've actually dug myself into a difficult situation. Do I continue this one or do I go back to campaign map? Let's go back to campaign, see what the next opportunity is. I guess I got a government grant after I assume inventing the calculator because just making one and shipping it out isn't that impressive. What's this? Charlie's sounds ink is closing down, not on my watch. Your dad worked at Charlie's for decades. There's no way you can let it go under. Time to step in. All right, I'm on it. This is my dad. Well, I have some questions for you. Firstly, how is this business failing? And secondly, why would you call me potato father? What have I done to make you hate me? I don't know what I'm doing here. They're asking me to just sort of their career roots and I don't know anything about logistics. Okay, there we go. I've created a route between them. An employee. Go on, Jody, you can do it. In fact, I'll give you some help. There you go. There's some employees for you. There you go. Look at that. Conker, conker, conker. We have a fun workplace, don't we guys? It's like three boxes. They're just coming back with nothing on the trace. Oh, skeleton. These are the previous employees. I'm creating a skeleton maze. There you go. Be free, everybody. Oh my God, that's terrifying. Let's put down a little rug as well. Dress up the place. Oh, and some floating portraits. Victorian lamps for a bit of class. And then what was I actually supposed to do? I think I was supposed to get like a rack or something. There we go, a small shelving rack. Perfect. Oh, he wanted it next to the assembly table. Okay, well, I'll just put it there. I don't know how to rotate stuff, so you can't use it. But it's there. Okay, the company's struggling a bit. We need storage space and we've ran out. I think we're in the wrong market, honestly. Like we're minus 40,000. Why don't we just sell the skeletons, which we are sourcing for free? Honestly, if I was one of these employees, I'd be a bit worried too. We have loads of skeletons and like clearly an absurd amount of employees. Hey, do you think we're overstaffed? No, you should have seen us yesterday. We had like 50 more people. Anyway, let's get moving these skeletons. All right, well, you know, I think I've helped these people out enough. I think I'm ready to start my own business. I'm sick and tired of other people reaping the rewards over what me, Potato, does for them. Plus this company has a lot of skeletons in their closet. I don't want to get caught up in this. They were struggling when I came in, apparently. They had like eight grand. Now they're minus 53 in one afternoon. Well, you know what, Papa? That's what nepotism gets you. Oh, no, I can't do free play until I complete level two and I've made a mess of level two. Oh, no. All right, I'm just going to start again over in this little shack over here. I'll ignore the rest. They'll be fine. They're self-sufficient.  I'm going to ignore that. I'm doing just fine.  I'm going to blame them even though it's clearly poor management. I'm just not pretty good at delegating here.  Like why is she not going over there for the supplies? She's just standing there. She's like some sort of an empire. She has to be invited to cross the threshold. It's about to say with an attitude like that, you'll never make it in this business. But I think everyone can make it in this business even if you just refuse to work. Yeah, I'll carry the chemicals. Just pick up the chemicals and bring them over. He needs them, okay? Doesn't matter if they're dangerous. Yes, I did it. Look at this. A well-oiled and lubricated grease stop machine. Capitalism at work, folks. It only took 112 employees, $164,000 in debt, and this absolute mess of a workshop. But we made one cassette player. What do you mean people don't use cassette players? You mean in the time it took us to make that cassette player, they invented an iPod? What is an iPod? I'm sure it's just a fan. Cassettes will never go out of style. To be fair, my guy's definitely stuck in the 80s. Anyway, folks, now that I've set your business off on the right track, now I'm going to go do my own business. Goodbye. Oh, that's not where the exit is. All right, that was... Sorry, excuse me, hold on. Sorry, I just need to scoot past you there. Sorry about the big exit speech there. All right, all right, all right, goodbye. Oh, also can't get out here. Okay, I'll just scoot past you there. Sorry about this, sorry. My apologies. All right, free play, new game. Oh yes, I'm going down to the beach to make products. We're going to be in like Silicon Valley, I assume. I just hear of Silicon Valley. I don't know what it is. I think it's down in Kerry. All right, what are we going to make? I got to make a decision here. I'd like to make skeletons, but I don't think that's possible. Plus, I don't think there's a huge market for them right now. All right, by my calculations, calculators are the way forward because I can't calculate anything else. But we're going to make funky ones. Look at that, everyone will want one of these. This is what the kids will think is cool. Everyone will want them. It's going to be the next fidget spinner. I'm not going to peel minus 1.5 out of five stars. What? Come on. Okay, I'm calling a fidget calculator. That should go down a treat with the youth. Oh my God, the design is so inefficient. Oh my God, it could cost $450. I don't think you need a calculator to calculate that that is a rip-off. I don't think many people are going to be buying this calculator. But then again, it is called fidget calculator. All right, let's make some fidget calculators, everyone. All right, make an LED matrix. They're like, I am not a train employee. I do not know how to do this. All right, what if I just buy everything I need? Oh no, I can't. Only base products can be... Oh no. Okay, I have to actually make these. Oh, that means effort. All right, I need metal and I need plastic. All right, there we go. You got some plastic. Now you make parts. I'm going to need a lot more employees than this because I don't plan on doing any of this myself. Oh yeah, sorry, I have nowhere to store anything. Hold on, bear with me. There we go. Okay, now we're ready to be all greased up in a well oil lubricated machine. I'll stop saying lubricated. Did someone just sneeze? You're not going home. We need you here. See, this is what was handy in the other place. We had like 70 employees ready to take their place if someone got sick. All right, starting to feel really lubricated up in here. We got a lot going on and it's just going very, very smoothly. No hitches at all. Soon we'll be making calculators and then we'll be able to add up the numbers and see that we're going into massive death really fast. Okay, we're just missing the LED matrix and an LED array. Come on, I think she's got a box of them here. Okay, wait, we only need the LED matrix now. Okay, something is going right. Who's making the LED matrix? Wait, oh no one is. Oh, who can I blame for this?  You're out of the job. Can't believe you didn't correct me. You've no spine at all, Richard.   So no HR for you. And that has nothing to do with the fact we don't have a HR department. You're just wrong. Okay, he needs circuit boards. Don't pretend you don't have metal and plastic. I can see there's plenty of metal and plastic. There you go. Maybe we need some more logistics people. We have this one poor woman, his middle-aged woman just hauling all of the equipment all the time. Okay, I'll get you one more logistics person. Produce 300 calculators. Yes, I'm committing to that. I think I can do that. I mean, we've yet to make one, but I think once we get the wheels turning, we're going to go straight off a cliff. We're going to go straight up the... We're going to do it. My goal at the moment is just sell a product or have to do well on that goal yet. She's making it. She's making the calculator. Good thing you have your hard hat on.  You're the only person in here with a hard hat.  All right, add a rule. And where's the calculator? Fidget calculator. And we're going to sell them. Look at that. Our first fidget calculator. Why is it in such a big box? God, this technology must be old. Milestone reach. Did I sell something? I sold two calculators. Yes. By my calculations, that is a huge success. Unexpected too. I'm going to go for a stroll on the beach because I feel like I've earned it. Hey, everyone, please help me. My business is failing and I feel so overwhelmed. Help me. Help. Don't just run. She's always short of these things. I need some more benches. Yeah, make the matrix. Yeah, make the matrix. That profit, didn't it? That was a huge movie. If we get Keanu in here, sell some calculators, do some marketing. I mean, look what he did for Cyberpunk. My guy's just doing laps. He's so anxious all the time. He's under so much stress. He knows deep down. He knows nothing about business and he's in constant fear of another potato famine. All right, we're still not in profit, but I'm going to up production. Another assembly line. More calculators. We have a bit of a storage issue. She's just standing there waiting to put it on the rack with this little space. Maybe I should buy them some more. I just want to stop sinking money into this thing. I want a profit, please. Potato needs this. Look at him. He's devastated. I think we just need more logistics people. I think that's the problem. We're not moving fast enough. Give me three of them. I know this seems overboard, but I just want to be efficient. What are you missing? You're missing those. And then if she's going slow, that's because she's missing. Let's see. What's she... No, no, she's flying now. She's flying now, lads. She's going to be just fine. There's loads of boxes here. Like, I think they're just not close enough because he's just waiting. Let me make, I guess, a rack over here or maybe I could store them here and he'll come over. I know he's just being lazy now. They're right there and he's not coming to get them. Okay, now we're lubricated, verging on greasy. This seems to be flying along, except for this. What does he want? LED arrays. Who's making the LED arrays? Could you hurry up, please? This lady, please hurry up. Come on. I know you get no time to see your family and no lunch breaks, but come on, speed things up. Gonna buy a suggestion box too, guys. If you want to make a suggestion, just drop it over here. Thank you. There's so many supplies that are just not being used for some reason. They're just up on the racks and they're just ignoring them. Okay, I've optimized buying and selling. I'm buying a bit less supplies, so hopefully we don't run out because we seem to have a massive surplus at all times somehow. Oh my God, we've only sold 41 calculators? I thought we'd almost be complete. The gold bar looked like it was almost full up here. Oh my God, for a brief moment, I think I was profitable. Yes, by $4 at one stage, I was profitable. Okay, wages are costing me a bomb. The materials are costing me a lot as well. My reviews, oh my God. My margin is minus 80% and growth is minus 1%.  That'll bring my costs down a bit. I just got to pick someone random. And the logistics people, I'm going to fire you at random as well. I hope I didn't fire my original one. I want to see how far I can push the human spirit with her. Oh yeah, that's her. That's her. She's fine. I wonder if I made another assembly desk and we just assembled more and more calculators. Would it work? Because I think we have enough supplies. We definitely have enough.  Joseph, come on. There you go. There's no way I could make even more, is there? This is so inefficient, like the layout, everything about it. There's nothing lubricated about this, to be honest. It's the least greasy machine I've ever seen. I'm blocking the doors in case the employees try and leave. You're not allowed to leave anymore, guys. Your soul is linked to this business. It is linked to the potato famine. All right, I think all the doors are blocked. This one maybe? Okay, there we go. There we go. I think these are just windows, are they? But it's still an escape. I'm making a profit. Oh my God, we're running so efficient. We're constantly running out of metal cases, though. I'll hire someone and make them make metal cases. How is he gonna get in? Okay, he's not. He's not coming in. Whatever it is, he's not able to get in the building. So I guess no one leaves or enters anymore. We're just shipping out calculators. This building's gonna become like a myth, some folklore among the villagers.  The thing is I don't actually know how to move objects because I was trying to move objects earlier because I made it so badly arranged in here and I wanted to move some things about to fix it but I couldn't because I don't know how so now I can't get any employees. We're just stuck in here.  Why have we plummeted in revenue? We're not making any calculators. Why are we not making any calculators? She's holding the metal cases. Oh, we don't have enough storage space. Oh my God, oh my God. She just stopped working for some reason and halted her whole production just when it was going well. Oh, thank God we've gone into profit again. Oh, well, that was short lived. I just just never speak, Kevin. Just never ever speak. Oh, wait, that's my new employee. She can't get in. She's just trapped in the other building. I honestly didn't even know I had another building. Sign of a good business owner. Paying rent for a second building you don't even realize is there. Oh, well, more skeleton storage, I guess. Your company's bankrupt. You have 179 days left. Each day is only 20 seconds. I think I see the writing on the wall. Oh my God, total cost versus revenue. Everyone just lost interest in calculators all of a sudden. I guess they just got better at math.  All right, well, you know what? I think I should bail. I should sell the business and leave. It's always a good strategy. Trust me, I've done it in real life. But yeah, thank you very much for watching. I appreciate you and I hope to see you next time. Bye for now.


Hello in this presentation, we will work a problem related to the accounts receivable cycle similar problem that we had in the past However, now we will be recording the transactions here as we did in the past But not posting them directly to a worksheet But rather to the general ledger building the general ledger as we go Then using that general ledger in order to construct the trial balance, which will then remain in balance So as you can see this is going to be a bit longer of a worksheet This is kind of the traditional type of worksheet that we would work out However, we're gonna set up this worksheet a bit differently than many book problems in that We will be posting the journal entries as we go to the general ledger and then building the trial balance as we go I suggest putting a system together like this whenever possible because it's gonna save you time in that if you do everything at Once over here and then post it to the general ledger and then post it to the trial balance It's very likely that you will be out of balance and not know where to go where to go back where to start To see where to how to fix things and if we do something in this format where we put it together as we go It'll be a lot easier for us to know when an error happened and know where to go in order to fix it Rather than going back to the beginning I also recommend using Excel as much as possible just to learn Excel and as well as it's just a great tool To learn these types of problems. All right first activity We can say perform work on account and invoiced the client So we did work and invoiced the client our first question is always is cash affected We're gonna say here. No cash is not affected because we Invoiced the client have not yet received any money Therefore, I would think about what we have received second question and we received an IOU accounts receivable Accounts receivable is an asset assets have normal debit balances. We're gonna make it to go up by doing the same thing to it Which is another debit? So I'm gonna copy accounts receivable. I'm in cell E6 So I'm gonna right-click and copy that cell in E6 gonna paste that to cell B5 So in B5 right-click and paste it one two three Then we're gonna put the dollar amount of 13,000 so that's gonna be in C5 So in C5, we will type in one three zero zero zero no commas nothing else jet That's it once we select enter it will then include the comma Then we're gonna put our cursor in D6. We know that we will then credit something I'm gonna do this with a formula that formula being negative of this number That'll take the 13,000 debit in cell C5 Multiply times negative one in essence and flip the sign so I'm gonna represent the credits We're gonna represent credits with brackets and or negative numbers in Excel and in this case in the credit column as well Then we just need to know what this account will be Why are people gonna pay us 13,000 in the future? Because we earned it we earned revenue and therefore we're gonna have the revenue account down here revenue or income I'm gonna copy that We're gonna put that over here right below in B6 right-click and paste it one two three Then we're gonna double-click right before the R and space three times indent that three four three spacings for the indentation Now we know that we credited the revenue because we debited the accounts receivable But if we think through it, we're gonna say revenue has a normal credit balance revenue only goes up customers pay us We don't pay customers and therefore we will do the same thing to it which in this case is another credit So when that we could double-check that we are crediting that account two different ways now we can post this Remember that this is the general journal this whole sheet This is the journal entry that we posted into the general journal the act of us recording the journal entry is Journalizing the journal entry in the general journal now. We will be posting the journal entry This is the process of posting to the general ledger. So we're first going to have this accounts receivable here Here it is on the trial balance Second account here it is on the general ledger second account. So we are we are in the debit side So here's the accounts receivable debit side since cell J 16 We will use a formula to record this highly recommend using formulas because it will tie your worksheet together So in J 16, I'm going to say that equals and then just point to this 13,000 there That's going to make this amount to go up by 13,000 It will also pull that total over here to the trial balance and it will of course put us out of balance by that 13,000 so there we have that then we're going to post the other side revenue It's an order the accounts on the trial balance assets then liabilities then equity then revenue So revenue is going to be over here a bit Therefore, I'm going to try to make this a bit smaller so we can see more of this big spreadsheet in one page I'm going to use these bars down here. You could hold down control and scroll down I'm going to use this icon so you can see what I'm doing and I'm going to take it down from 130 to 120 And now you can see at 110 we can see the revenue. Remember it's an order assets liabilities equity then revenue We over here have a credit to revenue Therefore, we're going to credits revenue over here. So here's the revenue account We're on the credit side and we're just going to be right here in Cell s9 s9 s9 will say equals that I'm going to point to this 13,000 Once I select enter It's going to increase this amount to 13,000 credit direction That amount will also pull over to here in the revenue put us back in balance And we'll have net income of 13,000 So there we have that 13,000 here 13,000 there back in balance net incomes at 13,000 net income calculated as revenue minus expenses Remember that this is revenue and we're seeing it as a credit. So that credit means we have net income This isn't a loss. We're not working with kind of a plus and minus income statement We're working with a debit and credit income statements and here the credits are greater than the debits Next activity we said be receive cash on account for work performed in the past Note, I just updated the worksheet tab here. So this is going to be the 13,000 13,000 is going to be b Meaning we received cash on account for work performed in the past 13,000 We're going to say our first question is cash affected. We're going to say yes We received cash keyword here being received Remember that you might get mixed up with this terminology in that we see both the idea of received cash and on account And when you see on account, you might just think hey, that means cash is not affected It means something else like receivable is happening and that would be the case like it was in a But in this case, of course, both of those things are happening meaning accounts receivable is happening And the cash is happening and it will be able to think that process through if we first think about the cash So just the idea that we have received cash will tell us that cash is going up So we're going to say cash is an asset cash has a debit balance We need to make it go up. So we're going to do the same thing to it as its normal balance Which is a debit. So I'm going to copy cash. I'm going to make this a bit larger too. I'm going to scroll back down here back to our plus arrow Back to 130 scroll back over So I just copied cash and I'm going to put that here in cell b8. So right click and paste There we have that the amount then is going to be that 13,000 again 13,000 And if we debit something 13,000, we will credit something for 13,000 I'm going to do that with our formula negative of that cell There we have that now we just need this amount here or this This account here and that account you would think if we got cash from a customer You would think revenue but clearly we had already recorded revenue in the past That being the time that we earned it that therefore the time that we recorded under the revenue recognition principle So this time we're actually going to credit the receivable, of course The receivable having 13,000 in it representing people owing us money. Now they have paid us Therefore that receivable needs to go back down to zero representing the fact that people don't owe us money anymore So I'm going to copy that I'm going to put that on the bottom and sell b9 Right click paste 123 We're going to double click in front of the a and indent three times on the space bar and enter Now we know we're going to credit the receivable because we debited the cash But we want to think through it double check it We know that the receivable has a debit balance We know that it needs to go down because people paid us and they no longer need to have an account Representing that they owe us therefore we will do the opposite thing to the receivable as its normal balance that being a credit Then we'll post this remember. This is the journal entry. We journalized in the general journal Which we will now post to the general ledger. So we have cash up top. That's going to be the first one That's our first account on the trial balance our first account on the general ledger We debited it over here. Therefore, we are going to put it in the debit side over here in cell j9 Equals highly recommend using formulas here We're going to say equals and then point to that 13 000 in cell c8 You could just type in equals c8 if that's easier as well You can say equals and then look over here and say that's c8 and do that And that's going to increase once we select enter It will increase this cell to 13 000 It increases the accounts receivable to 13 000 and puts us out of balance by 13 000 The second account is accounts receivable Accounts receivable is our second account up here and therefore will be our second account down here We're going to be in the credit side. So i'm on the credit side We are in cell k 17 remember that you always want to keep skip a row whenever possible Because it's really should be an order by date some book problems We'll try to squish everything together and put the credits right next to each other right next to a debit wherever there's room But you really don't want to do that because typically a general ledger will be in order by date And each date should have its own line item. So we shouldn't really have a debit and a credit on the same line item So we are on k 17 equals we're going to select equals and then point to The accounts receivable here in d 9 And once we select enter it should bring this back down to zero It'll bring that zero over here to accounts receivable put us back in balance. No effect on net income So there we have that zeros here We're back down to just cash and the revenue. That's all that's happened so far during the activity of this problem Number c or letter c perform work on account and invoice the client So this should sound familiar. We'll go through this a bit quicker here We're going to say is cash affected. No, we build the client therefore got an iou that an accounts receivable account Accounts receivables and assets we need to make it go up. We'll do the same thing as its normal balance It's normal balance being a debit means that we will then debit it again Copy and receivable put it on top in cell b 11 right click paste 123 the amount then 650 We're going to credit something for 650 with a negative of that number So there we have that now we just need to put the account here Why are people going to pay us 650 in the future? Because we earned revenue. We earned revenue. That's going to be this account e 10 Right click copy We're going to put that and paste it in b 12 right click and paste 123 Then we're going to double click right before the r and spacebar three times And enter so we know we we're going to credit the receivable because we debited the we're going to credit the Revenue because we debited the receivable But we also can double check it in our mind. We could say that revenue has a normal credit balance It only goes up customers pay us. We don't pay them Therefore we need to make the revenue go up by doing the same thing to it Which is another credit? So here's our receivable account. We have a debit here. It's our second account on the trial balance Second account therefore on the general ledger. We're going to post this 650 to the receivable gl in the debit side down here in j 18 So within j 18, we're going to say that that equals and then point to this 650 And that should bring this balance up to 650 We should be able to record that here 650 will then appear here in the trial balance and put us out of balance So there's that side of it now We're going to record the receivable the revenue side of it and notice that revenue is way down here It's always in order assets liabilities equity and then revenue same order on the general ledger So in order to see that I'm going to try to make this a bit smaller again so we can see more on one page I'm going to select this negative and bring it down to 110 percent rather than 130 percent As you do this note that some of the cells might get too small for and that means it'll show a bunch of like Number signs if that happens just just make it bigger again And they'll go back away All that means is the cell is the row became too small for the cells And typically it'll correct itself as you adjust the screen back to whatever the default was that you were working with Okay, second side. We're gonna have here The credit side is going to be right here in s 10. So within s 10 I'm going to say that equals and then point to this 650 once I select enter This is going to increase by 650 and it'll also pull that balance over here It'll put us back in balance and it will increase net income So there we have that we have 13 650 now here and that's increasing net income because we have no Expenses and therefore we have revenue minus expenses of just the revenue of 13 650 Remember that is revenue. That is not a loss. Although it has brackets around it. It is a revenue account Okay, d perform work on account and received And invoiced the client performed work on account and invoiced the client So same type of activity again. We're focusing in on that receivable cycle So we're looking at that receivable cycle. So is cash affected We're going to say no we performed work and invoiced the client. No cash has happened at this time We're going to say then that we got something we got an iou That iou being represented by accounts receivable. I'm going to go back down over here. I'm going to make this a bit larger again I'm at 110 I'm going to bring it back up to 130 And we have this receivable. So the receivable is going to go up people owe us more money We have a debit balance in the receivable We're going to increase it by doing the same thing to it as its normal balance Which in this case is another debit. So i'm going to copy that We're going to put that on top. We're here in b14 Right click and paste one two three The amount then is going to be Uh 780 so 780 Then we're going to credit something by 780. So i'm going to go ahead and record that now It's going to be a negative of that number And enter And then we just need to know what that account should be and if we are going to get paid in the future Then it's for work that we have done Now so that's going to be the revenue account revenue has a credit balance And we're going to increase it. So i'm going to copy revenue Put that on the bottom right click paste one two three Then double click in front of the r And space it three times Now we already knew that we're going to credit revenue because we debited the receivable That's why we worked on the receivable first But we can double check ourselves by saying that revenue is a credit balance account It only goes up. Therefore, we're going to do the same thing to it Which in this case is a credit. It's being a credit normal balance account Then we're going to record this. So we got a counts receivable 780 That's the second account on our trial balance and therefore second account on the general ledger And we're going to just go to the next line down. That is on j 19 So we're in accounts receivable. We're on the debit side. We're in line j 19 cell j 19 And we're going to use a formula equals and point to this 700 and 80 That's going to bring this balance up 760 plus 780 to 14 30 That 14 30 also will be pulled over to the trial balance as we go and we are out of balance by The 780 until we record the second half that half being the revenue half Now the revenue is going to be in order again So it's an it's an order assets liabilities equity and then revenue So it's in the same order on the gl meaning revenue is going to be towards the end So i'm going to make this a bit smaller again bring it back down to 120 So we can see this revenue account note that revenue only goes up in the credit direction We don't see any debits in the revenue account. There are no credit and debits in the revenue account unless something funny happened So we're going to say that um the revenue is a credit here And therefore we will put it on the credit side here in cell s 11 and say equals And then point to this 700 and 80 Once we select enter, it's going to increase this side here It will pull that amount over to the trial balance over here and put us back in balance So there we have that we're at 14 4 30 and net income now has increased to 14 4 30 Last transaction and make this a bit larger back up to 130 over here going to scroll over to the left hand side And we are now on e Received cash on account for work performed in the past So first question is cash affected and we're going to say yes It said received therefore we received cash note again that it also says on account Which is probably might be triggering in your mind Hopefully at some point it's going to be triggering accounts receivable Which might make you think that cash isn't affected but remember this is the second transaction So both the receivable and cash will be affected So let's start with cash as always and we're going to say cash has a debit balance. We got more of it Therefore it's going up. How do we make something go up? We do the same thing to it as its normal balance which in this case is a debit So i'm going to copy cash I'm going to put that on top right next to the e here right click and paste 123 The amount will then be 650 And then we're going to credit something for 650. I'm going to do that with a formula that formula negative of the cell Taking that cell flipping the sign for a negative 650 We're then going to say what are we going to credit what account we just need this account now Now you would think maybe revenue since we got money for work We have done but we did the work in the past and had already recorded the revenue up here Therefore we're not going to credit revenue, but accounts receivable. We are decreasing the receivable So i'm going to copy the receivable We're going to put that down here in b18 right click paste 123 We're going to double click in front of a space three times And we know that we credited the receivable because we debited the cash and therefore must have credited the receivable If we think through it then we would say well Receivable represents the money owed to us now we have two people basically owing this money Later on we'll work with a subsidiary ledger that will tell us Exactly who those two people are but we can tell that it happened from these two different transactions So we probably have two different people that owe us money there Now one of those individuals from this transaction has paid us And therefore the account representing people owing us money should go down So this is a debit balance. We're going to make it go down by doing the opposite thing to it Which in this case is a credit Now we just need to post this out. So cash is here. It's the first account first account here First account on the general ledger. So we're in the cash account. We're going to We are going to credit cash. So we're going to go to the next line I'm sorry. We're we're in the debit side. It's a debit to cash debit cash We are in cell j 10 I'm going to say equals and then point to the 650 That 13,000 will then go up by 650 to 13,650 Which will then be pulled over to the trial balance as well Then we're going to credit the receivable. So here is the receivable We're going to credit the receivable account down here. It's the second account on the trial balance Second account on the general ledger. We are on the credit side of it. Therefore, we're going to be in the credit column And we're going to be down here in cell k 20 Where we will say equals and then point to this 650 That's going to bring this balance 14 30 down by 650 to 780 That 780 will then be pulled over to the trial balance and it'll also put us back in balance at this point Note that if we look at the receivable account here, we'll see kind of the story of the receivables This is what a receivable account will basically always look like we're going to have we invoice the client And then we received a check and then we invoice the client and we received the check We invoice the client here have not yet received the check So note that the the invoice in this check receipt may not be right next to each other in date such as this But that will typically be the pattern we should see we should see invoicing and then payments being received Note also However that we might be invoicing and then receiving like installment payments or something like that Which could make the the picture look a little muddier But note whenever we look at the receivable side of it We're going to have both debits and credits the debits represented work We did us billing the clients Usually with the documentation of an invoice and then credits representing payments Usually in the format of checks we have received for work done in the past That's going to be the typical thing you will see in the receivable cycle If we look at the revenue side of things Note that there's typically less activity in revenue than of course the receivable because the receivable is going to have twice as many transactions One for the for the billing Of or the invoicing and one for the receipt of the check But the the revenue account only goes one way notice It's only going up in the credit direction You're not going to see any debits in the revenue account not until we close it out And that will typically be the case and what we will see Within the general ledger of the revenue account. So note that these general ledger accounts are telling kind of the story They're telling the history by transaction broken down to each individual account And then that story is being condensed to one number that is then shown on the trial balance And then we can basically see that we can tie all that out all those ending balances To zero in a similar way. So this is kind of condensing the data that is being found on the general ledger to Just the ending balances of all the gl accounts


USS Polynations and her crew will no doubt solve their fair share of problems. They will be doing the nation's work, providing credible options for our leaders for decades to come. They will be respected always. Welcome and welcome news to our friends and our worst nightmare to our enemies.


So I'm joined by Jonathan Shafi, the co-founder of the Radical Independence Campaign in Scotland. It was a major player in 2014 as the campaign for independence went up from the mid-20s I think it was polling all the way up to 45 on the eve of the vote of course it didn't win but nobody was expecting that kind of improvement in the vote it was within touching distance of creating an independent Scotland. Welcome Jonathan. We've got so much to talk about obviously that campaign was in 2014 since then we've had the rise and the relative for the SNP the renewal of Labour with Jeremy Corbyn that meant a few seats going Labour's way in Scotland in June so we'll start with this if there was a general election in three or six months time how many seats would the SNP win or lose? Okay well to kind of answer the question about where the SNP vote is going we have to draw back slightly towards the referendum you're right to say that the support for independence went up hugely in a very small scale of time so it went up from about 20% to 45% and is now permanently around the 45% mark. The reason for that in my view it wasn't because of a nationalist impulse or any kind of patriotism as such but because there was an opportunity to vote against austerity against the Tories against new Labour and in that sense it was organically radical in my view because if you look back it was range against that movement of ordinary people it was the banks most of the media there was only one paper that supported independence the financial institutions and project fear which was designed close by better together so it was a radical movement in broad terms and in 2015 in the general election the SNP tapped into this they pitched themselves of being anti-austerity as being a thorn in the side of the British establishment and they won great rewards from this they won 59 MPs a huge huge number historic complete political hegemony but the problem I think comes when they think to themselves okay we've won that section of the working class it's now time to orientate ourselves in the corporate boardrooms so instead of using this hegemony to directly appeal and to continue to appeal to working-class Scotland by doing things like replacing the council tax which they didn't do or by pursuing a seriously radical programme of land reform which which they didn't do it's meant that a section of their post 2014 search has fallen away to an extent and that was always going to but I think it's been exacerbated by that kind of leadership which has been to moderate towards the centre and of course this has come alongside the development of Jeremy Corbyn who is seen as a kind of anti-neoliberal anti-establishment figure who obviously excites lots of people in Scotland lots of people who by the way voted yes are also excited by the prospect of Jeremy Corbyn and I think the combination of these things makes the political terrain very difficult for the SNP at a general election so to answer your question there is no safe seat in Scotland and that's quite a turnaround from 2015 we look at the 2017 results many seats were won by very small margins indeed one was won by two votes so there's no safe seat there was a Tory surge there was a steady increase in the labour vote to an extent they won back some territory I think with the possibility of a Corbyn prime minister in the next three to six months if that's when an election that's a realistic option and I think that labour at a general election would do well because of that but I think that underlines that lots of what's driving Scottish politics is a left-wing agenda so I'm obviously a big fan of Jeremy Corbyn I'm a Labour Party member you are a fan of Jeremy Corbyn's politics but you are still campaigning for independent Scotland I'll briefly state well I think Scotland should stay in the union and then you can you can make the counter argument I would say that Britain is better together I never thought I'd be saying that a couple of years ago because we now have the possibility of a parliamentary majority at Westminster alongside a social majority in the country which is highly politicised highly mobilised and a radical left-wing prime minister overseeing a radical project of both economic reform anti-imperialism changing global institutions now Britain is a medium-sized power but as a hangover of our colonial past we you know punch above our weight when it comes to the G7 the IMF WTO now I would say to a left-wing Scott you can be part of this and even if we only achieve 30 percent of the things we set out on that's significant reform could be on a par say with the remaking of the World Order after 1945 and NATO and so on we could do that or you may go off have a separate country and actually be very affluent you know have a country that's equivalent to Norway or Sweden in terms of wealth and maybe even with fewer income inequalities out of those two alternatives as a left-wing what would you take this is a really important discussion and by the way I don't come at it from a dogmatic point of view first about Corbyn Corbyn is probably the most authentic political leader that Britain has seen in the modern era and I think that's what's galvanised so many people behind them but I think it is important to point out that I don't think Corbyn is a product of the labour left necessarily if you remember he struggled to get on the ballot paper the first time around he only got on by the skin of his teeth and actually it's the build-up of a whole series of social processes social movements a feeling in society a frustrated feeling needing to find voice and they found it through Jeremy Corbyn and there was this huge influx of people into the Labour Party now I think that this carries a whole range of strengths what Corbyn's managing to do is not just to challenge with power but to change the terms of the debate which is hugely important but in Scotland the political terrain in my view is quite complicated unlike England where the whole left is behind the Labour Party I mean really without question in Scotland it's not it doesn't mean that everyone who's not behind Labour is behind the SNP but it does mean that there are some quite deep issues when it comes to the relationship that many many working-class people have with the Labour Party because of the 2014 experience so from my position in Scotland I want to be in a position along with a range of other people to be able to bring together sections of people who agree with independence sections who don't but that doesn't mean there's not tactical questions give me one last example if Jeremy Corbyn was the prime minister I would not be arguing at that point in time further to be a Scottish referendum because A I don't think it would win B I think the arguments would be very difficult and C I think that there's a real sense in which the independence movement could be hijacked by people who essentially want to break the Corbyn government and build a neoliberal Scotland so I think that's a really important distinction and just lastly everything that we are discussing hinges on absolutely hinges on in my view the strength of the extra parliamentary movement this is to me the fundamental thing to me it's not about joining Labour although that's important particularly in England when you're going through re-selections and so on it's about having a focus on what happens if Corbyn's elected and there being an extra parliamentary movement that goes for the same if Scotland was to win independence if Scotland wins independence and there's not a radical social movement that can forcefully express itself onto the political situation it will be captured as well so that to me is the essence of the most important strategic element of I would say the situation but okay I'll reset the question then forget Labour if get Corbyn even but if the end result here when we're old men we've got white hair 25 years time on the one hand you have a independent Scotland a world leading in renewable energies high tech great food exports GDP per head higher than Norway very low income inequality or Britain slightly higher income inequality not perfect not as far down the road when in regards to the development of socialism has played a major role in the recasting of global institutions while also undermining the neoliberalism in one of the primary centres for that paradigm what would you take well I think the question of Scottish independence isn't just about you know the living standards of Scots although that's clearly central it is about dismantling the British state and this is I think important because maybe this is where we have a difference to kind of explore you're talking about a Britain under Corbyn or under a socialist government going and being able to transform global institutions and so on and so forth I think that that is optimistic but it's optimistic on the basis of there being the possibility of the British state itself being able to transform these kinds of institutions instead of the British state and its various arms the army and so on and so forth reforming the Weber party out of its radicalism that's why I think the extra parliamentary is so important the reason why I say that is because I think the institutions at the global level are going to have to change anyway I think this is a good point yeah I mean so the question is in which way do they go and you know I talk to a few people around the Melocheon project they're you know they're quite positive about the outcome of a French presidential race several years down the line we don't know what's going to go on in the US but unless the Democrats go with a relatively radical candidate I think Trump would win a second term so let's be very optimistic and say we have Melocheon we have a left-wing Democrat nominee and left-wing a progressive Democrat nominee and they win the presidency all of a sudden in between Corbyn and those two these are three players if you can get a bit of buy-in from elsewhere in the global south China for instance just those four can really change the terms of the game can't they whereas Scotland by itself you know like I say it could be an analogue to Norway but it can't play the game at that level definitely right so it's not about but you see it's not about Scotland playing the game at that level it's about Scotland dismantling the British state it's about Scotland breaking British power right I don't think that we can do the things that you're talking about without there being a major confrontation with the global capitalist system right I know you agree with that right but but what what what that looks like what forces are involved and to me is important I think the left has to far more adopt a politics of rupture in that sense I'm opposed to the EU for example I think one of the one of the really interesting dynamics is the idea of a Corbyn government happening outside of the EU how does that play itself out I'm in favour of a pan-european movement and I think Corbyn can play a huge role in that but I do think that the national question if you're operating in Scotland you have to take a very nuanced view it's not going to be the case that you're always on the front foot when it comes to independence but it is the case that that question is going to exist and it has existed of course for a very long time but I mean you know if Corbyn comes to power and gets drowned out by whole sections of the rolling class then Scottish independence suddenly then becomes much higher up the agenda my view though would be that if Corbyn comes to power the absolute priority for everyone regardless of where the yard in the UK is to defend that government against the onslaught that would inevitably come but also to challenge the government as well to to turn most of the left again and keep coming back to this that's the need of extra parliamentary movements how best do you build an extra parliamentary movement in Scotland I don't think it's necessarily by being a member of the Labour Party which cuts you off from quite important sections of people the Tories did surprisingly well in the in the last election in Scotland are they got seven seats now some of this yeah yeah I think more I'll have to double check but yeah they've done they did well yeah what's the future for them if the s&p vote does go down a little bit if Labour do a little bit better we thought the Tories were dead and buried in Scotland after 1997 do you think in the long term they're going to sort of slightly come back as the voice of reaction reunionism I think that the Scottish Tories did well in the last election because what they did was as you point out was they crystallised their entire campaign as opposition to independence if you wanted to support the union you voted Tory simple as that so Ruth Davidson is being entangled in the crisis of the British state and of the British Tory party and there's only so much that they can distance themselves for it it's worth remembering that Ruth Davidson was very public in campaigning for remain she doesn't like the relationship with Donald Trump she has built her political brand on being a progressive Tory that's very very difficult for her to do now when at the same time she can't lash out against her own party so I think the Scottish Conservative party is going into a period of thankfully I think it's going into a period of relative plateau I don't think it's going to increase from here and I would very much hope that it can be overtaken by the Scottish Labour Party I've made a number of jokes about how you know if Richard Leonard wins Labour will overtake the SNP and Westminster polls not Hollywood polls just for clarification how possible is that I think that's very possible because if you look at the last election I think I've kind of mentioned this in various formats before is that there's no safe Scottish seat I mean if you talk to SNP MPs right they'll tell you this I mean it's not rocket science right one seat I think was won by like two votes another by 60 votes when there's the real possibility the realistic possibility of Corbyn becoming the prime minister I think they'll be attractive to many many people in Scotland and it's really important that the SNP begin to develop a theory of the crisis I think Alex Salmond for example does have a theory of the crisis he understands the nature of populism he understands the nature of the crisis of the British state I'm not sure the present SNP leadership does they think that a managerial approach to politics will break through into the kind of popular into popular discourse and sentiment I don't think it does I think people want politics which is based on a real determined vociferous attempt to completely alter how our society works finally Richard Lennon has just been elected as the leader of the Scottish Labour Party we could have a general election next year probably not but I'd say there's maybe a 40 percent chance it's perfectly possible can you foresee a situation whereby the people behind independence could be advocating a Labour vote strategically even if Labour were a party of the union were promising some kind of constitutional convention immediately following a general election which is being talked about quite widely I think John Trickett would oversee it do you think there's two conversations about a constitutional convention for Britain and then something like divo max and another referendum being promised under certain conditions a bit like the Good Friday agreement is that is that possible for you well I think that I mean to me the idea of a constitutional convention is a good thing right I mean you know that's that's a good thing to happen however because of the nature of the no campaign in 2014 one of the things that put forward in the days running up was a vow and this was a vow about more powers going to Scotland a bit more devolution so on and that wasn't delivered in fact the repatriation of powers from Brexit right is now even in contention right about where they go and so because people feel that they've been sold up up to put it like that and then the ability of Scottish Labour to be able to convince people who voted yes or who voted no on that basis right is very difficult and I think people will vote Scottish will vote for Labour in a Westminster election I think Scottish Labour still has huge challenges I mean one thing I would say about Richard Leonard is he's not Jeremy Corbyn Richard Leonard is a GMB official I mean he's not I'd have to check but he doesn't have the kind of standing as being a permanent rebel inside the Labour Party that I think Jeremy Corbyn has certainly not the profile around it and Corbyn comes from a different I think political milieu and I think that's more exciting for people but there is a reason why the huge phenomenon in England that's existed around Jeremy Corbyn and thousands of people coming out to see him and so on hasn't translated in the same way as Scotland it's important for us to think those things through but yeah I think that I think there's every possibility that many people who voted yes would vote for Jeremy Corbyn I equally think that their vote for Jeremy Corbyn would also should not also be taken as a vote for the union I think it's much more complicated than that