Adjusting Entries Explained | Accounting How To | How to Pass Accounting Class

Adjusting Entries Explained | Accounting How To explains why adjusting entries are needed in accrual accounting, revenue recognition and the matching principle, gives examples of adjusting entries, explains prepaid assets and unearned revenue accounts, and introduces accruals and deferrals.

This is an accounting tutorial for accounting students, business owners, and bookkeepers to explain accounting basics for beginners. Featuring Terrance the T-Account Rex and accounting educator, Caroline Grimm, this accounting tutorial is part of the playlist series How to Pass Accounting Class and Accounting Basics for Business Owners.

⏰ Accounting How To Time Stamps

00:00 Introduction to Adjusting Entries
00:50 Why do need to do Adjusting Entries
01:20 Accrual Method of Accounting
01:35 Revenue Recognition and Matching Principle
01:59 When are adjusting entries done?
02:30 What kinds of adjusting entries are needed?
02:37 What kinds of accounts are adjusted?
03:02 Prepaid and Unearned accounts
05:44 Never adjust cash in an adjusting entry
06:36 Start with the original transaction
06:46 Example: Customer Deposit
08:45 Example: Prepaid Insurance
10:16 Accruals and deferrals

🏋 Accounting Exercises: Download the spreadsheet:

https://docs.google.com/spreadsheets/...

🏋 Adjusting Entries Cheat Sheet: Download the pdf:

https://drive.google.com/file/d/1tkWg...

🎥 Accounting How To Playlists

🎥 Understanding Journal Entries Playlist
   • Understanding Journal Entries  

🎥 How to Pass Accounting Class Playlist
   • How to Pass Accounting Class  

🎥 Accounting Basics for Business Owners Playlist
   • Accounting Basics for Business Owners | Ac...  

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📚 Get Caroline’s books on Amazon:

Strength in Numbers: Fast and Easy Accounting Basics for Business Owners
https://www.amazon.com/gp/product/B09...

Solving the Cash Flow Puzzle: Practical Solutions for Common Financial Problems in Your Business
https://www.amazon.com/gp/product/B09...

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