Hello in this lecture, we’re going to record the adjusting entry related to depreciation were recorded on the left hand side, that’s where the journal entry will go. And then we’ll post that to the trial balance on the right hand side trial balance being in the format of assets in green liabilities in the orange. Then we have the equity section in the light blue and the income statement, including revenue and expenses in the darker blue. We’ll first talk about what accounts are affected and then we’ll go back and explain why this is the case. So first, we know that it’s an adjusting entry. So that’s going to have some added rules, you want to keep the adjusting entry separate in your head from just normal journal entries. all entries have at least two accounts and an equal number of debits and credits as well as adjusting entries. But adjusting entries are all made of as of the cutoff date, we’re gonna say 1231 in this case, and they generally have one account above this equity line above the capital meaning a balance sheet account and one account below that line meaning an income statement accounts.
Posts in the QuickBooks category:
Adjusting Entry Insurance 9
Hello in this lecture, we’re going to record the adjusting entry related to insurance, we’re going to record the transaction up here on the left hand side and then post that to the trial balance on the right hand side, the trial balance being in the format of assets in green liabilities in orange. Then we have the equity section in light blue and the income statement, including revenue and expenses in the darker blue. We will start off by just identifying the accounts that will be affected and then talk about why they will be affected. So we know that we have the adjusting entries. Remember that adjusting entries should be kept separate in your head in that they do have the same characteristics of having debits and credits in at least two accounts affected however, they’re also all as of the end of the time period, either the end of the month or the end of the year.
Adjusting Entry Accounts Receivable 8
Hello in this lecture, we’re going to record an adjusting transaction related to accounts receivable. We’re going to record the journal entry over here on the left hand side and then post it to the trial balance on the right hand side trial balance and format of assets in green liabilities in orange equity in the light blue and the income statement in the darker blue including revenue and expenses, we’ll first walk through which accounts will be affected and then explain why that is the case. So we know that it is an adjusting entry and knowing that it’s an adjusting entry means it’s slightly different than a normal journal entry in that it does have two accounts like normal journal entries, but it also generally has one income statement account below the blue line and one balance sheet account above the blue line the light blue line, so it’s going to be one account above owner’s equity, one account below owner’s equity.
Adjusting Entry Wages Payable 7
Hello, in this lecture, we’re going to record the adjusting entry related to payroll, we’re going to record the journal entry up here on the left hand side and post that post that to the trial balance over on the right hand side trial balance in terms of assets and liabilities, then equity and the income statement, including revenue and expenses, all blue accounts, including the income statement being part of equity, we’re first going to go through and see if we can find the accounts that will be related to a payroll adjusting entry. And then we’ll go explain why we are going through this process. So just if we have the trial balance, and we know it’s an adjusting entry related to payroll, we know that there’s going to be at least two accounts affected. And we know that because it’s an adjusting entry, it will be as of the end of the time period. In this case, let’s say it’s the end of the year 1231.
Adjusting entry unearned revenue 6
Hello in this lecture we’re going to record the adjusting entry related to unearned revenue. Remember that the adjusting entry is going to be a separate process. It’ll have the same rules as every journal entry. But we can add some added rules when we know that we are working with the adjusting entry process. For example, all adjusting entries will be as of the time period, the end of the month, or the end of the year. In this case, we have the unearned revenue. We know that all adjusting entries for the most part will have an account above the owners capital meaning and balance sheet account. So if we look at our trial balance, looking for an account related to unearned revenue, we see here unearned revenue. So we know that that’s going to be part of our journal entry.
Adjusting Entry Supplies 5
Hello in this lecture, we’re going to record an adjusting entry related to supplies. Remember that adjusting entries are going to have their own set of rules, you want to keep them separate in your head. They are still journal entries, and they follow the journal entry rules. But if we know that we are dealing with adjusting entries, we can apply an additional set of rules to help us to understand what the journal entry will be. For example, the adjusting entries will all be at the end of the time period, the end of the month or the end of the year. And if we take a look at the supplies account, we also know that typical adjusting entries will always have an account in the balance sheet section in terms of the trial balance that’s going to be somewhere up above this owner’s capital account. So we look for an account on the trial balance related to this supplies. on the balance sheet we said how about supplies and we also note that the supplies, the adjusting entries will have an account below the equity section below the owner’s capital in the income statement, revenue and expenses.
Why Use a Worksheet in Adjusting Process 3.5
Hello in this presentation we will discuss the reasoning for using a worksheet within the adjusting entry process, a worksheet like the one on the right where we have an unadjusted trial balance adjustments and then an adjusted trial balance. We typically think of this worksheet as outside of the normal journal entry process, meaning the normal journal entries that we are going to input will be in the general journal posted to the general ledger giving us more detail and then posted to the trial balance. And this case, we’re going to use a worksheet which will go straight to this adjusted column, and then show us the unadjusted balance the change and then the adjusted balance. If we were using accounting software like QuickBooks, then we would have the normal data input in the system we would produce then the unadjusted trial balance and put that into a worksheet such as this, and then work through this process to have our worksheet show the balances here. idea being that the worksheet in the adjusting process is going to be outside of the normal system.
Adjusting Journal Entry Rules – What are Adjusting Journal 3
Hello in this presentation we’re going to talk about adjusting entry rules. In order to talk about adjusting entry rules. We first want to distinguish what adjusting entries are from normal journal entries. Normal journal entries being those transactions we will be recording throughout the month including the payment of the utility bill pain of wages, purchasing something on account the things that the accounting department typically does. Within the adjusting process, we’re going to draw a line or head and say the adjusting department is done in a separate department or as a separate process have a separate set of rules. Some of those rules being the same as for every journal entry, some different, the adjusting process is going to adjust accounts such as prepaid insurance, depreciation, unearned revenue, those types of accounts that need to be adjusted as of the end of the time period as a financial statement date in order to make the accounts on an accrual basis as of that date.
Types of Adjusting Journal Entries Adjusting Journal Entry 2
Hello in this presentation we’re going to talk about types of adjusting journal entries. When considering adjusting journal entries we want to know where we are at within the accounting process within the accounting cycle. all the entries the normal adjusting entries have been done the bills have been paid the invoices have been entered for the month we have reconciled the bank accounts. Now we are considering the adjusting process. Those adjusting journal entries are needed in order to make the adjusted trial balance so that we can create the financial statements from them. The adjusting journal entries being used to be as close to an accrual basis as possible. those categories of adjusting journal entries, which will then have more types of adjusting entries within each category will include prepaid expense, unearned revenue, accrued expenses and accrued revenue. Let’s consider each of these we have the types of adjusting entries first type prepaid account expenses. prepaid expenses are items paid in advance.
Accounting Cycle Steps in the Accounting Process 1
Hello, in this presentation, we’re going to be talking about the accounting cycle or the accounting process, that process that the accounting department will go through on a systematic basis over and over and over again, typically thought of as a monthly process. Although it could be thought of as a yearly process or some other process in terms of the amount of time that will pass. But these are going to be the steps that we’ll be going through in terms of the accounting process, always keeping in mind that in goal of financial accounting, which are the financial statements, some texts will have more steps than five as we have here. Some texts will have less than five steps. But the goal here is to really have a broad picture big picture, so that when we think about the accounting process, we can break down that that big picture view, five is a pretty good number for us to be able to memorize and keep in our mind if we have more than that, it can start to kind of muddy the picture. So once we get into each of these individual steps, we want to get into more detail, obviously.