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  • Adjusting Entries Reviewer

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    SIMPAO, Ma. Kristine Mae C.
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    This document defines and provides journal entries for various accounting concepts including: - Prepaid expenses which are payments made in advance that are recorded as assets and expensed over time. - Accrued expenses which are expenses incurred but not yet paid through adjusting entries. - Deferred revenue which is revenue received in advance that is recorded as a liability and recognized as income over time. - Accrued revenue which is unbilled services already provided that are recorded through adjusting entries. - Bad debt expense for uncollectible accounts through an allowance account. - Depreciation expense for allocating the cost of a fixed asset over its useful life.

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    Original Title

    ADJUSTING ENTRIES REVIEWER

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    This document defines and provides journal entries for various accounting concepts including: - Prepaid expenses which are payments made in advance that are recorded as assets and expensed over time. - Accrued expenses which are expenses incurred but not yet paid through adjusting entries. - Deferred revenue which is revenue received in advance that is recorded as a liability and recognized as income over time. - Accrued revenue which is unbilled services already provided that are recorded through adjusting entries. - Bad debt expense for uncollectible accounts through an allowance account. - Depreciation expense for allocating the cost of a fixed asset over its useful life.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    11 views3 pages

    Adjusting Entries Reviewer

    Uploaded by

    SIMPAO, Ma. Kristine Mae C.
    This document defines and provides journal entries for various accounting concepts including: - Prepaid expenses which are payments made in advance that are recorded as assets and expensed over time. - Accrued expenses which are expenses incurred but not yet paid through adjusting entries. - Deferred revenue which is revenue received in advance that is recorded as a liability and recognized as income over time. - Accrued revenue which is unbilled services already provided that are recorded through adjusting entries. - Bad debt expense for uncollectible accounts through an allowance account. - Depreciation expense for allocating the cost of a fixed asset over its useful life.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 3

    PREPAID EXPENSE – advance payment; paid but not yet incurred

    Asset Method
    Journal Entry
    Debit - Prepaid ____
    Credit – Cash
    Explanation: To record the payment of advance ____

    Adjusting Entry (amount: tignan yung debit kung magkano yung expense)
    Debit - ____ Expense
    Credit - Prepaid ____
    Explanation: To record the expired portion of ____

    Expense Method
    Journal Entry
    Debit - ____ Expense
    Credit – Cash
    Explanation: To record the payment of ____

    Adjusting Entry (amount: tignan yung debit kung magkano nalang yung asset mo)
    Debit - Prepaid ____
    Credit - ____ Expense
    Explanation: To record the asset portion of ____

    ACCRUED EXPENSE/ACCRUAL OF EXPENSE – incurred but not yet paid


    Formula: P x R x T
    Debit - ____ Expense
    Credit - ____ Payable
    Explanation: To record the ____ incurred
    DEFERRED REVENUE/UNEARNED INCOME/UNEARNED REVENUE
    - Revenue already received but not yet earned

    Liability Method
    Journal Entry
    Debit - Cash
    Credit - Deferred/Unearned Subscription Fees/Revenue nakadepende naman sa nakabigay sa
    accounts title
    Explanation: Advance payment of ____

    Adjusting Entry (amount: tignan yung credit kung magkano yung kinita mo)
    Debit - Deferred/Unearned Subcription Fees/Revenue nakadepende naman sa nakabigay na
    accounts title
    Credit - Subscription Fees/Revenue (Income to)
    Explanation: To record the earned portion of ____

    Income Method
    Journal Entry
    Debit - Cash
    Credit - Subscription Fees/Income
    Explanation: Advance payment of ____

    Adjusting Entry (amount: titignan yung credit kung magkano pa yung hindi kinikita)
    Debit - Subscription Fees/Income
    Credit - Deferred/Unearned Subscription Fees/Revenue
    Explanation: To record the uneaned portion of ____
    ACCURED REVENUE/ACCRUED INCOME – rendered services/good but not yet received

    Debit - ____ Receivable


    Credit - ____ Revenue
    Explanation: To record the receivable of ____

    BAD DEBTS EXPENSE/DOUBTFUL ACCOUNTS EXPENSE


    (amount: kung magkano nalang yung kulang na nalagay sa trial balance)

    Debit - Bad Debts Expense/Doubtful Accounts Expense/Uncollectible Accounts Expense


    Credit - Allowance for Bad Debts/Allowance for Doubtful Accounts/Allowance for
    Uncollectible Accounts
    Explanation: To record the uncollectible accounts

    (amount: kung magkano yung sobra sa nalagay sa trial balance)


    Debit - Allowance for Bad Debts
    Credit - Bad Debts Expense

    DEPRECIATION EXPENSE
    (Cost - Salvage Value/Scrap Value) / Useful Life

    Debit - Depreciation Expense (Name of the asset)


    Credit- Accumulated Depreciation (Name of the asset)
    Explanation: To record the depreciation of ____

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