Adjusting Journal Entries Examples. Below are the examples of Adjusting Journal Entries. The five following entries are the most common, although companies might have other adjusting entries such as allowances for doubtful accounts, for example.
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Each month, accountants make adjusting entries before publishing the final version of the monthly financial statements. The adjusting entry is between a revenue and an asset account. It is in the business since two decade and during that time period, it has.
Accrual-type adjusting entries are needed because some transactions had occurred but the company had not entered them into the accounts as of the end of the accounting.
Here is the process we will follow: Draw two T-accounts.
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This is the fourth step in the accounting cycle. To put these revenues and expenses in the right period, an accountant will book adjusting journal entries. How to record a prepaid expense: Examples Prepaid expense journal entries help you keep your accounting books accurate.