{"id":269,"date":"2021-03-21T07:52:00","date_gmt":"2021-03-21T07:52:00","guid":{"rendered":"https:\/\/bcisnotes.com\/fourthsemester\/?p=269"},"modified":"2021-03-21T07:52:00","modified_gmt":"2021-03-21T07:52:00","slug":"journalizing-adjusting-entries-accrual-accounting-and-adjustments-bcis-notes","status":"publish","type":"post","link":"https:\/\/bcisnotes.com\/fourthsemester\/journalizing-adjusting-entries-accrual-accounting-and-adjustments-bcis-notes\/","title":{"rendered":"Journalizing adjusting entries || Accrual Accounting and adjustments || Bcis Notes"},"content":{"rendered":"<h2 style=\"text-align: center;\">Journalizing adjusting entries<\/h2>\n<p>Journalizing adjusting entries are made in your accounting journals at the end of an accounting period after a trial balance is prepared. After adjusting entries are made in your accounting journals. They are posted to the general ledger in the same way as any other accounting journal entry. There are several types of adjusting entries that can be made, with each being dependent on the type of financial activities that define your business.<\/p>\n<p>Adjusting entries are necessary to update all account balances before financial statements can be prepared. &#8230; The accountant examines a current listing of accounts\u2014known as a trial balance\u2014to identify amounts that need to be changed prior to the preparation of financial statements.<\/p>\n<h3>Purpose of Journalizing Adjusting Entries<\/h3>\n<p>The purpose of adjusting entries is to accurately assign revenues and expenses to the accounting period in which they occurred.<\/p>\n<p>Whenever you record your accounting journal transactions, they should be done in real-time. If you&#8217;re using an accrual accounting system, money doesn&#8217;t necessarily change hands at that time of the accounting entry; the purpose of adjusting entries is to show when the money was officially transferred and to convert your real-time entries to entries that accurately reflect your accrual accounting system.<\/p>\n<p>An adjusting entry can be used for any type of accounting transaction; here are some of the more common ones:<\/p>\n<ul>\n<li>To record depreciation and amortization for the period<\/li>\n<li>To record an allowance for doubtful accounts<\/li>\n<li>To record a reserve for obsolete inventory<\/li>\n<li>To record a reserve for sales returns<\/li>\n<li>To record the impairment of an asset<\/li>\n<li>To record an asset retirement obligation<\/li>\n<li>To record a warranty reserve<\/li>\n<li>To record an accrued revenue<\/li>\n<li>To record previously billed but unearned revenue as a liability<\/li>\n<li>To record any accrued expenses<\/li>\n<li>To record any previously paid but unused expenditures as prepaid expenses<\/li>\n<li>To adjust cash balances for any reconciling items noted in the bank reconciliation<\/li>\n<\/ul>\n<h3>What Accounts Are Affected by an Adjusting Entry?<\/h3>\n<p>Journalizing adjusting journal entries are accounting journal entries that update the accounts at the end of an accounting period. Each entry impacts at least one income statement account (a revenue or expense account) and one balance sheet account (an asset-liability account) but never impacts cash.<\/p>\n<p><strong>Adjustments entries fall under five categories:<\/strong> accrued revenues, accrued expenses, unearned revenues, prepaid expenses, and depreciation.<\/p>\n<p>&nbsp;<\/p>\n<p>You may also like <a href=\"https:\/\/bcisnotes.com\/fourthsemester\/types-of-adjusting-entries-accrual-accounting-and-adjustments-bcis-notes\/\" target=\"_blank\" rel=\"noopener\">Types of adjusting entries<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>Journalizing adjusting entries Journalizing adjusting entries are made in your accounting journals at the end of an accounting period after a trial balance is prepared. <a class=\"mh-excerpt-more\" href=\"https:\/\/bcisnotes.com\/fourthsemester\/journalizing-adjusting-entries-accrual-accounting-and-adjustments-bcis-notes\/\" title=\"Journalizing adjusting entries || Accrual Accounting and adjustments || Bcis Notes\">[&#8230;]<\/a><\/p>\n<\/div>","protected":false},"author":2,"featured_media":272,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[70,79,80],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Journalizing adjusting entries || Accrual Accounting and adjustments<\/title>\n<meta name=\"description\" content=\"Journalizing adjusting entries are made in your accounting journals at the end of an accounting period after a trial balance is prepared.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bcisnotes.com\/fourthsemester\/journalizing-adjusting-entries-accrual-accounting-and-adjustments-bcis-notes\/\" 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