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.

Cash Method vs Accrual Method 135

Whoa in this presentation we will be discussing a cash method versus an accrual method objectives. We will be able to at the end of this, define and explain a cash method, define and explain an accrual method and explain the difference between the cash and accrual methods. When considering the cash method and the accrual method, they’re not necessarily completely different or diametrically opposed. But when presented, they are often presented in this format partially because in order to explain one, it’s often useful to know the other it’s useful to be able to compare the differences between the two methods.

Unearned Revenue Reversing Entry 10.55

This presentation and we will enter a reversing entry related to unearned revenue. Let’s get into it with Intuit QuickBooks Online. Here we are in our get great guitars file, we’re going to be opening up our old reports down here on the bottom left, the standard reports that being the balance sheet report. First, we’re going to be changing the dates up top from 1120 to the cutoff date 1120 to 2920 February 29 2020. We’re going to run that report. Right click on the tab up top, duplicate the tab up top, go to the tab to the left, go down to the reports on the bottom open up the other favorite report bad being the P and L Profit and Loss income statement where they’re going to be changing the dates up top for it from oh one it won’t let me do it. Why isn’t it let me do it. It’s gonna be a 1012020229 to zero.

Pay Payroll Tax 8.65

In this presentation, we will pay payroll tax liabilities. Let’s get into it with Intuit QuickBooks Online. Here we are in our get great guitars file, we’re going to open up our reports on the left. So we’re going to go down to the reports on the left, we’re going to be opening up once again that trust the trial balance, we’re going to type that in and the find reports here trial balance, we’re going to be opening up the trial balance here, then I’m going to be changing the name up top. So I’m going to scroll up top to get to that dates. I’m not not the name, the date, I’m going to change the date from Oh 10120 to 1230 120, January through December 2020. Run that report.

Advance Customer Payment or Deposit 8.45

This presentation we will record an advanced payment or a customer deposit. In other words, we’re going to receive a deposit in advance for a guitar that we’re going to provide in the future. Let’s get into it with intuits QuickBooks Online. Here we are in our get great guitars file. Let’s first take a look at a flowchart. I won’t spend as much time on it because we seen it in the past what we really want to do here is put that negative receivable on the books which will be dealing with in our adjusting entry process later. The process here note that the normal accounts receivable processes to have an invoice and then we’d receive the payment then we make the deposit here we’re going to say someone came into our shops as they want a guitar.