Adjust expense in LOG

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Aug 6th, 2022
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How to adjust expense in LOG

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in this video youamp;#39;ll find out what accrued expenses mean and Iamp;#39;ll show you how they work with an example hey there welcome back to accounting star Iamp;#39;m James and in this video weamp;#39;re going to cover accrued expenses in accounting this is part of a playlist that Iamp;#39;ve put together covering adjusting entries in accounting which you can find linked up here and down below in the description so far weamp;#39;ve covered the big picture of adjusting entries prepaid expenses and deferred revenue and very soon Iamp;#39;ll be releasing the final installment where weamp;#39;ll cover the crude revenue so hit subscribe and click on the bell so you donamp;#39;t miss out on that one and painting more accounting content thatamp;#39;s coming soon but in this video weamp;#39;re going to take on accrued expenses with an example so letamp;#39;s dive in in true accounting stuff style fashion weamp;#39;ll begin with the definition an accrued expense is a past expe

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What are basic accounting adjusting entries? Accrued revenues. Accrued expenses. Unearned revenues. Prepaid expenses. Depreciation.
Journal entries for expenses are records you keep in your general ledger or accounting software that track information about your business expenses, like the date they were incurred and how much they cost. Business expenses can include a range of things, like rent, payroll, and inventory.
An adjusting journal entry is a financial record you can use to track unrecorded transactions. Some common types of adjusting journal entries are accrued expenses, accrued revenues, provisions, and deferred revenues. You can use an adjusting journal entry for accrual accounting when accounting periods transition.
Here are the steps to make adjusting entries. Review the trial balance. Identify types of adjusting entries. Prepare adjusting journal entries. Prepare accrual adjusting entry. Prepare deferral adjustments. Prepare estimate and provisions adjustments. Enter adjusting entries in the general journal. Post to the general ledger.
Adjusting entries allow you to adjust income and expense totals to more accurately reflect your financial position. After you prepare your initial trial balance, you can prepare and post your adjusting entries, later running an adjusted trial balance after the journal entries have been posted to your general ledger.
Adjustments are made at the close of an accounting period to rectify errors, record unaccounted income or expenses, and maintain the integrity of financial records to prepare comprehensive financial statements. This ensures financial data accurately reflects the financial position and performance of a business.
To recognize prepaid expenses that become actual expenses, use adjusting entries. As you use the prepaid item, decrease your Prepaid Expense account and increase your actual Expense account. To do this, debit your Expense account and credit your Prepaid Expense account. This creates a prepaid expense adjusting entry.
What Is an Adjusting Journal Entry? An adjusting journal entry is an entry in a companys general ledger that occurs at the end of an accounting period to record any unrecognized income or expenses for the period.

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