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.
