Entries Table
For those accounting students that have a hard time in understanding the adjusting entries for completing the accounting cycle period, here is a short summary of how to go about it.
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Adjusting Entries |
Comments |
Reversing Entries |
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ACCRUAL |
Used portion |
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| Dr. Expense item/receivable |
WITH ENTRIES |
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| Cr. Accrued Payable/ income | |||||
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DEFERRAL |
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Prepaid |
ASSET METHOD |
Used portion |
NO ENTRIES |
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| Dr. Supplies Expense | |||||
| Cr. Supplies | |||||
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EXPENSE METHOD |
NOT used portion |
WITH ENTRIES |
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| Dr. Supplies | |||||
| Cr. Supplies Expense | |||||
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Unearned |
LIABILITY METHOD |
Used portion |
NO ENTRIES |
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| Dr. Unearned X Income | |||||
| Cr. X Income | |||||
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INCOME METHOD |
NOT used portion |
WITH ENTRIES |
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| Dr. X Income | |||||
| Cr. Unearned X Income | |||||
