Adjusting journal entries are prepared ________.

Adjusting journal entries are prepared. after pre

Answer

General guidance

Concepts and reason
Journal entries: Journal entries are the first process in the accounting cycle. All the transactions which occur during the year are recorded in the accounting journal using the accounting rules and principles. Journal entries are base for preparing the financial statements. While preparing journal entries all assets, expenses and losses are debited while all income, liabilities and gains are credited in the books of account for increase and for decrease assets, expenses and losses are credited while income, liabilities and gains are debited. Closing journal entries: Closing journal entries are prepared to close the temporary accounts of income statement and transfer their balances to permanent account which is the retained earnings account. In closing entry all the expenses account are credited and another common temporary account is debited which is income summary so that the expenses would have zero balance. Similarly the revenue accounts are debited and income summary account is credited so that the revenue would have zero balance. At the end the balance in income summary would represent net income or loss which is transferred to retained earnings and the income summary account balance would be closed.

Fundamentals

Adjusting journal entries: Adjusting journal entries is the fourth process in the accounting cycle. Adjusting journal entries are recorded after the unadjusted trial balance is prepared. The adjusting journal entries are record to provide for accrued expense or accrued income and adjust the prepaid expense or prepaid income. They are recorded so that the financial statement reflects all the transactions properly and therefore the financial statement prepared would be correct.

Step-by-step

Step 1 of 3

The adjusting entries are prepared after the unadjusted trial balance is prepared and is recorded to adjust the accrued or prepaid expenses so that correct expenses and revenue are recorded for the current year which is used to prepare the financial statement. Thus, adjusting journal entries are not prepared after preparing the financial statements.

The adjusting entries are prepared so as to reflect the correct picture of the financial statement prepare that is income statement and balance sheet and so adjusting entries are required to prepare the financial statements and are therefore recorded before the financial statement are prepared.

Step 2 of 3

Closing entries is recorded after financial statements are prepared so as to close the temporary accounts of revenue and if closing entries are made it means all the accounting process is complete and there is no other adjustment required and therefore adjusting entries are not made after closing entries are recorded. Thus, adjusting entries are not recorded after closing entries are recorded.

Adjusting entries are recorded so as to adjust the accounts and closing entries are prepared to close the temporary accounts and is the last step of accounting process. The closing entries are recorded after the financial statement are prepared and adjusting entries is recorded before the financial statement are prepared and so adjusting entries are recorded before the closing entries are recorded.

Step 3 of 3

Adjusted trial balance means all the accounts and transactions are adjusted and recorded for preparing accrual basis of accounting and unadjusted trial balance is trial balance which is not adjusted for the year end transaction and so the unadjusted trial balance is adjusted for year end adjusted by preparing the adjusting entries.

Thus, the adjusting entries are prepared after preparing the unadjusted trial balance.

The adjusting entries are prepared after preparing the unadjusted trial balance.


The adjusted trial balance is prepared from the unadjusted trial balance and the adjusting entries recoded. The adjusting entries are prepared so as to record all the expenses and revenue which are due and accrued for the current year. From the adjusting entries the adjusted trial balance is prepared which is used to prepare the financial statements of the company. The adjusting entries shows the correct picture of the financials of the company and therefore important for the business. They are therefore prepared once unadjusted trial balance is prepared so as to adjust the accounts which require adjustment.

Answer

The adjusting entries are prepared after preparing the unadjusted trial balance.

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