Adjusting entries, accruals, and deferrals — how to record them, with worked journal entries for every case.
The accrued expenses journal entry debits the expense and credits a payable. See the accrual entry, the next-period payment entry, and an interest accrual worked out.
Five worked adjusting entries examples: accrued revenue, accrued expense, unearned revenue, prepaid insurance, and depreciation — each balanced and explained.
Adjusting entries record revenue earned and expenses incurred before cash moves. Learn the five types with worked journal entries and the mistakes to avoid.
Closing entries zero out revenues, expenses, and dividends into retained earnings at period end. All four journal entries worked with numbers that tie.
The deferred revenue journal entry in two steps: debit Cash and credit Deferred Revenue when cash arrives, then debit the liability and credit Revenue as you earn it.
The depreciation journal entry debits Depreciation Expense and credits Accumulated Depreciation, a contra-asset. See it with real numbers and the balance sheet view.
Prepaid expenses are payments made before the benefit arrives, so they start as an asset. See the journal entries and how the balance expenses out month by month.
Unearned revenue is cash received before delivering a product or service. Learn why it is a liability, where it sits on the balance sheet, and how it becomes revenue.