Adjusting%20Entry%20Notes[1]

Adjusting%20Entry%20Notes[1] - A FEW PAGES CONCERNING...

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A FEW PAGES CONCERNING ADJUSTING ENTRIES. (Freshly typed—could have typos!) These notes are intended to help you look at adjusting entries from a few different points of view. They correspond in detail with the material you’ll see presented in class. INTRODUCTION TO ADJUSTING ENTRIES At the end of the accounting period, we make adjusting entries to accrue (record) and revenues and expenses that we overlooked during the ordinary course of bookkeeping. These are revenue and expense events that don’t involve immediate cash or billings—that’s why thy get overlooked by bookkeeping: there’s no receipt or payment of cash, and no receipt or sending out of invoices, any of which would make the bookkeeper do a journal entry. ______________________________________________________________________________ A. EXPENSES. This is where most of the action is in adjusting entries. Under the accrual concept, expenses arise as resources are used. But often we use resources and don’t have any associated cash payouts or invoices. That’s when the higher-level accountant has to make sure these expense accruals are recorded. 1.
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Adjusting%20Entry%20Notes[1] - A FEW PAGES CONCERNING...

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