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Write 200–250 words that respond to the directions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. Adjusting entries are used to make
Write 200–250 words that respond to the directions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas.
Adjusting entries are used to make sure that all revenue and expenses are recorded in the correct period. Last week you learned about four categories of adjusting entries: accrued revenue, accrued expenses, deferred revenue, and deferred expenses. Watch this very short video to refresh your knowledge. Think about what you know about accounting and adjusting entries and answer the following questions.
How to Prepare Adjusting Journal Entries
- Identify 1 type of adjusting entry, and give an example.
- Discuss what would happen if you did not make the adjustment. How would the financial statements be affected?
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