Adjusting Journal Entries and the General Ledger

Adjusting Journal Entries and the General Ledger
Student Name
University
Course
Professor Name
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Adjusting Journal Entries and the General Ledger
Adjusting journal entries are the unrecognized revenues and expenditures bookkeepers record in their corporation's general ledgers, usually at the end of the financial year. According to Faccia and Mosteanu (2019), adjusting entries help businesses in changing transactions from a cash basis to the accrual accounting technique. Therefore, based on the revenue recognition principle, this method aims to recognize income when a firm earns it instead of when the company receives cash.
Makeup Magic Adjusting Journal Entries
for the Month of November, 2017
Date

DESCRIPTION

P/R

DEBIT ($)

CREDIT ($)


30

Advertising Expense
Prepaid Advertising


300 (N1)

300 (N1)


30

Service Revenue
Cash


2,000 (N2)

2,000 (N2)


30

Depreciation Expense
Accumulated Depreciation


75

75

Makeup Magic General Ledger
for the Month of November, 2017
Advertising Expense
DR

CR

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

30

Prepaid advertising

300




30

Balance

300




Prepaid Advertising
DR

CR

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

7

Cash

900

30

Advertising expense

300

30

Balance

600




Service Revenue
DR

CR

Date

Particulars...