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Adjusting Entries
   A Puzzling Concept
        Content by Dr. Kathleen Irwin; Media by PresenterMedia
What are Adjusting Entries??
                            Deferrals and Accruals
•   To begin unlocking this
    puzzle, let us introduce the
    two types of adjustments
    you might have to make
    at the end of the business
    cycle or period.
      •   Deferrals: when you prepay for
          something, or if you accept
          payment for services or
          merchandise prior to earning
          it.
      •   Accruals: revenues earned or
          expenses paid that need to
          be put on the books before
          closing.
Putting it together

          •   Deferrals Include:
               • Prepaid Expenses: Example

               • Unearned Revenues: Example



          •   Accruals Include
               • Accrued Revenues: Example

               • Accrued Expenses: Example
For more on Adjusting Entries, be sure to go through all the material in your Lesson
     and watch the homework assignment Video provided under Lesson 4.

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Quick Look at Adjusting Entries

  • 1. Adjusting Entries A Puzzling Concept Content by Dr. Kathleen Irwin; Media by PresenterMedia
  • 2. What are Adjusting Entries?? Deferrals and Accruals • To begin unlocking this puzzle, let us introduce the two types of adjustments you might have to make at the end of the business cycle or period. • Deferrals: when you prepay for something, or if you accept payment for services or merchandise prior to earning it. • Accruals: revenues earned or expenses paid that need to be put on the books before closing.
  • 3. Putting it together • Deferrals Include: • Prepaid Expenses: Example • Unearned Revenues: Example • Accruals Include • Accrued Revenues: Example • Accrued Expenses: Example
  • 4. For more on Adjusting Entries, be sure to go through all the material in your Lesson and watch the homework assignment Video provided under Lesson 4.