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.
General Ledger 245
Hello, in this presentation we will discuss the general ledger. At the end of this, we will be able to define what the general ledger is. We’ll list components of the general ledger and explain how the general ledger is used. When looking at transactions in terms of journal entries and posting those journal entries in track prior presentations, we were posting those journal entries mainly to a worksheet in order to see a quick computation over the beginning balance and what is happening to that balance, posting it to a format of a trial balance than an adjusting column and then an adjusted trial balance. Note, however, that we typically think of the journal entries being posted to a general ledger. The general ledger can be very complex when we look at it which is why it is often useful to not look at it when we first start posting the transactions but to see that how those transactions affect interest Visual accounts.
Accounts Payable Journal Entries 240
Hello in this presentation we will be recording a business transactions related to accounts payable or the purchases cycle recording these transactions with debits and credits. At the end of this we will be able to list transactions involving accounts payable, record transactions involving accounts payable using debits and credits and explain the effect of transactions on assets, liabilities, equity, revenue, expenses and net income. We’re going to be recording these transactions up here in the left hand side in accordance with our thought process. We will then be posting these not to the general ledger but to a worksheet format so that we can see a quick calculation as to what is the impact or effect on the individual accounts as well as the effect on the account groups as a whole. Remember that all the groups for the accounts will always be listed in order when you’re looking at a trial balance. Which is why I recommend looking at a trial balance.
Accounts Receivable Journal Entries 230
Hello in this presentation we will be recording that journal entries for business transactions related to accounts receivable otherwise known as the revenue cycle. We will be recording these using debits and credits. At the end of this we will be able to list transactions involving accounts receivable record transactions involving accounts receivable using debits and credits and explain the effect of transactions on assets liabilities, equity, revenue, expenses and net income. We’re going to be recording these transactions up here on the left hand side constructing those journal entries in accordance with our thought process our list of questions to most efficiently construct the journal entries.
Cash Journal Entries with Cash 225
Hello in this presentation we are going to record business transactions involving cash using debits and credits. At the end of this, we will be able to list transactions involving cash record transactions involving cash using debits and credits and explain the effect of transactions on assets, liabilities, equity, revenue, expenses and net income. We’re going to record these transactions on the left hand side in accordance with our thought process. We’re then going to post them to a worksheet format, not necessarily or in this case, not a general ledger. But in a similar way, we will post it to this worksheet in order to see what is happening to each of these accounts individually as well as the groups of accounts in terms of assets, liabilities, equity, revenue and expenses, notes the order of the trial balance, always in the order of acids in this case in green liabilities in orange, and then we have the equity and revenue and expenses, the income statement accounts and net income at the bottom calculated as revenue minus expenses.