Module 13: Adjusting entries
Prepayments, accruals, deferred revenue, and reversing entries.
1. Why adjusting entries exist
The four kinds of adjustments — prepaid expenses, unearned revenue, accrued expenses, accrued revenue — and how to spot each.
About 8 minutes · 3 practice sets · Pro practice
2. Deferrals: prepaid expenses and unearned revenue
Adjust prepaid insurance, rent, supplies, and unearned revenue as time passes or work is delivered.
About 8 minutes · 4 practice sets · Pro practice
3. Accruals: unpaid expenses and unbilled revenue
Accrue wages, interest, utilities, and unbilled revenue at period end.
About 8 minutes · 5 practice sets · Pro practice
4. Reversing entries
Optional reversing entries that simplify recording the next payment after an accrual.
About 8 minutes · 2 practice sets · Pro practice