# Financial Accounting-Adjusting Entries & Financial Statement

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Financial Accounting-Adjusting Entries & Financial Statement, Adjusting entry creation, posting adjusting entries to a worksheet, creating financial statements from the trial balance.

What you”ll learn:

• Identify the components of the accounting cycle and analyze the role of adjusting journal entries within it.
• Classify and categorize the four main types of adjusting journal entries: prepaid expenses, unearned revenue, accrued expenses, and accrued revenue.
• Apply the appropriate adjusting journal entries for each type and construct examples to illustrate their impact.
• Evaluate the distinguishing characteristics of adjusting journal entries and differentiate them from regular journal entries.
• Organize and manage data effectively using an adjusting journal entries worksheet.
• Analyze and interpret common adjusting journal entries encountered in financial accounting.
• Critically assess the purpose and significance of reversing entries and analyze common examples.
• Construct accurate balance sheets, income statements, and statements of equity based on the adjusted trial balance.
• Examine the interconnectedness of the balance sheet, income statement, and statement of equity in financial reporting.
• Demonstrate a thorough understanding of accrual concepts and their application in the adjusting process.
• Apply problem-solving skills through multiple-choice practice questions to reinforce comprehension and analytical thinking.
• Utilize mathematical reasoning to solve short calculation practice questions related to adjusting entries.

## Description

Adjusting entries, posting adjusting entries to a worksheet, financial statement creation from an adjusted trial balance, and reversing entries will be covered in this course.

The adjusting entry process is a fundamental bookkeeping and accounting process but is often the accounting process most misunderstood.

Because of the name of accounting adjusting entry process we are led to believe that we are adjusting errors made by the accounting department. In other words, we may get the idea that the adjusting process would not be needed if the accounting department did their work perfectly through the period. This assumption of the adjusting process fixing errors is not the primary purpose for the adjusting process.

The adjusting process is a necessary part of the accounting cycle and one that is built into the accounting system. In other words, we plan for the adjusting process, and part of the plan is to enter normal accounting transactions in such a way that we will most easily be able to make adjustments at the end of the time period.

The adjusting process helps significantly with the understanding of accrual concepts because the adjusting process focuses on timing differences, on when revenue and expense should be recognized.

We enter adjusting entries as of the end of the period. Adjusting entries will have a balance sheet component and an income statement component.

Once the adjusting entries are complete, we can use the adjusted trial balance to create the financial statements, the balance sheet, the income statement, and the statement of equity. Who will we be learning from?

•    Excel Practice Files

•    Multiple Choice Practice Questions

•    Short Calculation Practice Questions

•    Discussion Questions

The PDF files allow us to download reference information we can use offline and as a guide to help us work through the material.

Excel practice files will be preformatted so that we can focus on the adjusting process and learning some of the basics of Excel, like addition, subtraction, and cell relationships.

Multiple choice example question helps us improve our test-taking skills by reducing the information into the size and format of multiple choice questions and discussing how to approach these questions.

Short calculation questions help us reduce problems that have some calculation down to a short format that could be used in multiple choice questions.

Discussion Question will provide an opportunity to discuss these topics with the instructor and other students, a process many students find very helpful because it allows us to see the topic from different viewpoints.

Who will we be learning from?

You will be learning from somebody who has technical experience in accounting concepts and in accounting software like QuickBooks, as well as experience teaching and putting together curriculum.

You will be learning from somebody who is a:

•    CPA – Certified Public Accountant

•    CGMA – Chartered Global Management Accountant

•    Master of Science in Taxation

•    CPS – Certifies Post-Secondary Instructor

•    Curriculum Development Export

As a practicing CPA the instructor has worked with many technical accounting issues and helped work through them and discuss them with clients of all levels.

As a CPS and professor, the instructor has taught many accounting classes and worked with many students in the fields of accounting, business, and business applications.

The instructor also has a lot of experience designing courses and learning how students learn best and how to help students achieve their objectives. Experience designing technical courses has also benefit in being able to design a course in a logical fashion and deal with problems related to technical topics and the use of software like QuickBooks Pro.

Topics include the adjusting process, posting the adjusting entries to a worksheet, creation of the financial statements, and reversing entries.

The adjusting process takes place after normal business transaction have been entered. Adjusting entries help us better understand the accrual process because they deal with timing differences.

We will use a worksheet to record the adjusting process and discuss the components of the worksheet.

Once we have completed the adjusting process we will have an adjusted trial balance representing account balances that are as accurate as possible according to accrual accounting.

We will then use the adjusted trial balance to create the financial statements, converting the debit and credit format of the adjusted trial balance to the plus and minus format of the financial statements.