Accounting Notes

The Adjustment Process Illustrated Accountants prepare a trial balance both before and after making adjusting entries. Reexamine the Gr...

Adjusting Entries Before financial statements are prepared, additional journal entries, called adjusting entries , are made to ensure t...

Depreciation Depreciation  is the process of allocating the depreciable cost of a long‐lived asset, except for land which is never depr...

Prepaid Expenses Prepaid expenses  are assets that become expenses as they expire or get used up. For example, office supplies are cons...

Unearned Revenues Unearned revenues  are payments for future services to be performed or goods to be delivered. Advance customer paymen...

Accrued Expenses An adjusting entry to accrue expenses is necessary when there are unrecorded expenses and liabilities that apply to a ...

Accrued Revenues An adjusting entry to accrue revenues is necessary when revenues have been earned but not yet recorded. Examples of un...