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Unformatted text preview: 2009-09-161ADJUSTING & CLOSING ENTRIES2009-09-162The Accounting CycleAdjusting and Closing Entries Topic SlidesTransactionsUnadjusted Trial BalanceAdjusting EntriesAdjusted Trial BalanceClosing EntriesFinancial Statements2009-09-162009-09-162Adjusting EntriesPurpose:sTo update the recordsEnsure that revenues are recorded in the period earnedEnsure that expenses are recorded in the period incurredPrepared at the end of the periodsIt would be too time consuming to record adjustments every dayAdjusting and Closing Entries Topic Slides2009-09-16Adjusting Entries SummaryType of AdjustmentExample(s)Entry During the PeriodAdjusting EntryDeferred RevenueUnearned revenueDR CashCR Unearned RevenueDR Unearned RevenueCR RevenueDeferred ExpenseAmortizationPrepaid expenses:InsuranceRentSuppliesDR AssetCR Cash or A/PDR ExpenseCR AssetAccrued RevenueInterest ReceivableNo entryDR AssetCR RevenueAccrued ExpenseInterest PayableWages PayableTaxes PayableNo entryDR ExpenseCR LiabilityAdjusting and Closing Entries Topic Slides2009-09-162009-09-16...
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