Learn to Adjust— Adjusting Entry

Adjusting entry is the hardest lesson so far for me, for us. I don’t get it at first but eventually I was able when I try and study harder. Depreciation is the easiest thing about adjusting entry, in straight line method; you just need to minus the salvage value from actual cost and divided by useful life. You will also need to adjust the accrued revenues, unearned revenues, accrued expense, prepaid expense, interest and bad debts. I can’t say more about adjusting entry so click here for more information.

After adjusting entry, you will need an adjusted trial balance. It’s just like the unadjusted trial balance with adjustments on amounts and accounts, of course. Double rule, peso signs and proper arrangement of accounts (assets, liabilities, capital, withdrawal, revenue and expenses).