Adjusting Journal Entries
Adjusting entries are journal entries that are posted to the general ledgers usually at the end of an accounting period to record business events that occurred during a specific accounting period but were not recorded.
Adjusting entries are usually made to report and record the following:
- Revenues that have been earned but are yet to be entered into the accounting ledgers;
- Expenditure that have been incurred but have not yet been posted into relevant general ledger accounts;
- Revenues that have already been recorded but are yet to be earned by the company;
- Expenses recorded by the entity that pertain to a future accounting period.