Adjusting entries practice

Record month-end adjustments with exact calculations.

Item 1 of 33

Freeintermediate

Adjust prepaid insurance

On January 1, Greenway Landscaping paid $3,240.00 for 12 months of insurance and debited Prepaid Insurance. Record the adjustment at Mar 31, 2026 if no insurance expense has yet been recorded and 3 months of coverage need to be expensed now.

Entry date

Greenway Landscaping · accrual basis · USD

Journal entry lines
Account	Debit	Credit


Totals	$0.00	$0.00

Enter amounts to see totals.

Quick lesson

Why adjusting entries exist

Adjusting entries are recorded at period end so that revenue and expenses land in the right period. Every adjustment touches one balance-sheet account and one income-statement account, and almost never Cash.

Type	Before adjustment	Adjustment
Prepaid expense	Asset overstated	Dr Expense / Cr Prepaid
Unearned revenue	Liability overstated	Dr Unearned / Cr Revenue
Accrued expense	Nothing recorded	Dr Expense / Cr Payable
Accrued revenue	Nothing recorded	Dr Receivable / Cr Revenue
Depreciation	Asset cost unallocated	Dr Depreciation Expense / Cr Accumulated Depreciation

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How grading works

Answers are checked on our server against a fixed rubric: accounts, debit or credit side, amounts to the cent, and dates. Hints start with the smallest useful clue. Revealing the solution is allowed, but mastery requires a later unassisted success.