Accounting Entries
What is the purpose of adjusting entries in accounting?
Before financial statements are prepared, additional journal entries, called adjusting entries, are made to ensure that the company’s financial records adhere to the revenue recognition and matching principles. Adjusting entries are necessary because a single transaction may affect revenues or expenses in more than one accounting period and also because all transactions have not necessarily been documented during the period.
Each adjusting entry usually affects one income statement account (a revenue or expense account) and one balance sheet account (an asset or liability account). For example, suppose a company has a $1,000 debit balance in its supplies account at the end of a month, but a count of supplies on hand finds only $300 of them remaining. Since supplies worth $700 have been used up, the supplies account requires a $700 adjustment so assets are not overstated, and the supplies expense account requires a $700 adjustment so expenses are not understated.
Adjustments fall into one of five categories: accrued revenues, accrued expenses, unearned revenues, prepaid expenses, and depreciation.
Accounting Transactions 8- Journal Entries 2
|
|
I LOVE DOUBLE ENTRY Mug Coffee Cup 11 oz ~ Accounting This high quality ceramic mug makes a great gift for anyone! The design is on both sides of the mug! The image is adhered through a heat process that makes it durable and long lasting. The colors won’t fade, so the mug can be enjoyed for years to come!… |
|
|
Targeting Profitable Entry and Exit Points with Alan Farley $39.77 … |
|
|
HP 10bII Financial Calculator $20.00 Puckered taffeta corset top, layered petal skirt, mesh underskirt and wings……. |
|
|
QuickBooks for Mac 2012 [Download] $139.36 New to QuickBooks? Find out why QuickBooks is the #1 best selling small business accounting software1. Built for your Mac Synchronize contacts with Address Book so you never have to enter an address or phone number twice2 Add reminders to iCal so you can be reminded to print invoices and checks or to pay bills in one consolidated calendar 2 Protect important data by backing up files to MobileMe… |
|
|
HP 12C Platinum Financial Calculator $59.00 Ask a serious financial analyst or MBA about the HP 12c and they’ll probably tell you they couldn’t get where they are without one. For 25 years, the 12c has demonstrated its excellence and has been established as the ultimate pocket-size calculator for financial use. The HP 12c Platinum is a faster, enhanced version of the industry-leading 12c calculator designed for the financial professional wh… |
|
|
The Accounting Cycle $11.21 Written for the beginner, this concise guide maps out the accounting cycle: balance sheets, income statements, ledger transactions, trial balances, and closing entries. |
|
|
Accounting for Non-accountants (Paperback) $10.93 This new edition of the easiest-to-use beginner`s guide to accounting features a free online component that works in tandem with essential chapters on balance sheets, income statements, statements of cash flow, double-entry accounting, and more…. |
|
|
Quickbooks X All-in-one for Dummies (Paperback) $22.86 What the book covers: the key features of QuickBooks and small business accounting including understanding double entry bookkeeping, planning and preparing a QuickBooks accounting system, invoicing customers, paying vendors, trackin… |
|
|
The Business and Household Accounts of Joyce Jeffreys, Spinster of Hereford, 1638-1648 (Hardcover) $102.69 The accounts of Joyce Jeffreys offer a rare opportunity to enter the social world of the early modern spinster – her daily life, personal circumstances, social activities and family relationships are all reflected through the entries in her manuscript…. |
|
|
Introduction to Managerial Accounting (Hardcover) $217.66 Description not available. |
Accounting News