Adjusting Entries Expense Transactions | Accounting How To | How to Pass Accounting Class

Adjusting Entries Expense Transactions | Accounting How To explains why adjusting entries are needed in accrual accounting, revenue recognition and the matching principle, gives examples of adjusting entries, explains prepaid assets and unearned revenue accounts, and introduces accruals and deferrals. This video focuses on accruals and deferrals for expense transactions. This is an accounting tutorial for accounting students, business owners, and bookkeepers to explain accounting basics for beginners. Featuring Terrance the T-Account Rex and accounting educator, Caroline Grimm, this accounting tutorial is part of the playlist series How to Pass Accounting Class and Accounting Basics for Business Owners. ⏰ Accounting How To Time Stamps: 00:00 Introduction to Adjusting Entries Expense Transactions 00:32 What are Adjusting Entries Needed? 00:54 What is an expense – related adjusting journal entry? 01:12 Difference between accruals and deferrals 01:36 What accounts are affected by adjusting journal entries? 02:01 One Balance Sheet Account, One Income Statement Account 02:26 Adjusting Journal Entry #1 Supplies Used During Month 04:17 Adjusting Journal Entry #2 Inventory Sold to Customers 06:45 Adjusting Journal Entry #3 Prepaid Insurance 08:52 Adjusting Journal Entry #4 Accrued Payroll 10:36 Adjusting Journal Entry #5 Incurred an Expense, no bill received 11:51 Adjusting Journal Entry #6 Depreciation 15:21 Depreciation and the Balance Sheet