Adjusting Entries Summary

Type Definition Analysis Adjusting entries

Supplies:
Dr Supplies expense
Prepayments (Deferrals)

Expenses paid in cash before
Prepaid Expenses
they are used or consumed.
Unearned
Cash received before services
Revenues
are performed.
Cr Supplies
Increase (debit) to an expense account. Insurance:
Decrease (credit) to an asset account. Dr Insurance expense
Cr Prepaid insurance
Depreciation:
Dr Depreciation expenses
Cr Accumulated depreciation
A decrease (debit) to a liability account Dr Unearned revenue
An increase (credit) to a revenue account Cr Service revenue

Dr Account receivable
Revenues for services Cr Service revenue
Increases (debits) an asset account.
Accrued Revenues performed but not yet received
Increases (credits) a revenue account
in cash or recorded.
Accruals

Dr ----------- expense
Expenses incurred but not yet Increase (debit) an expense account
Accrued Expenses Cr ------------- Payable
paid in cash or recorded. Increase (credit) a liability account