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  • Notes Adjusting

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    loren
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    This document discusses prepaid expenses and the expense method. Prepaid expenses are initially recorded as assets, then adjusted later as expenses through adjusting entries. The expense method initially records the expense, then adjusts through an entry that debits the asset and credits the expense. Both methods are demonstrated through example journal entries.

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    This document discusses prepaid expenses and the expense method. Prepaid expenses are initially recorded as assets, then adjusted later as expenses through adjusting entries. The expense method initially records the expense, then adjusts through an entry that debits the asset and credits the expense. Both methods are demonstrated through example journal entries.

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    © All Rights Reserved
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    4 views1 page

    Notes Adjusting

    Uploaded by

    loren
    This document discusses prepaid expenses and the expense method. Prepaid expenses are initially recorded as assets, then adjusted later as expenses through adjusting entries. The expense method initially records the expense, then adjusts through an entry that debits the asset and credits the expense. Both methods are demonstrated through example journal entries.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Notes-Adjusting

    Prepaid Expense
    -unang irerecord as asset

    Example:
    Dr Office Supplies
    Cr Cash

    Adjusting entry:
    Example:
    Dr Office Supplies Expense
    Cr Office Supplies

    Expense Method:
    -Unang irerecord ang expense
    Example:
    Dr Office Supplies Expense
    Cr Cash

    Adjusting entry:
    Example:
    Dr Office Supplies
    Cr Office Supplies Expense

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