Accounting › Section C · The adjustment process › Topic C.2
Recording deferrals, accruals, and depreciation
Knowing that an adjustment is needed is half the job; the other half is the entry itself. Five patterns cover almost every case: prepaid expenses, unearned revenues, depreciation, accrued revenues and accrued expenses. This topic records each one for Larkhill Design Studio at March 31.
In this topic
- A three-step method
- Prepaid expenses
- Worked example: insurance and supplies
- Depreciation and the contra-asset
- Worked example: Larkhill's equipment
- Unearned revenues
- Accrued revenues
- Accrued expenses
- Worked example: the next payday
- Common mistakes to avoid
- Key takeaways
This topic is part of Wuanberri Pro. Checking your access…