This course covers the accounting period adjusting process, including its place in the accounting cycle. Examples of prepayments, deferrals and accruals will be used to explain the “how” and the reasons for adjustments to accounts.  A brief discussion contrasts the differences between cash basis vs. accrual basis accounting.  Through practice, the “trigger” words for transactions that require adjustment will be identified.

Course Series

This course is included in the following series:

11 CoursesBack to the Basics: Accounting Fundamentals

  1. Accounting Review: The Basics of Debits and Credits
  2. Transaction Analysis, T-Accounts, Debits and Credits, and Trial Balances
  3. Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow
  4. The Accounting Equation and Financial Statements
  5. Bank Reconciliations, Cash, and Internal Controls
  6. Accounts Receivable Training: Bad Debts
  7. Equipment and Depreciation
  8. Inventory Costing
  9. Purchase and Sale of Inventory
  10. The Adjusting Process
  11. The Closing Process
Learning Objectives
  • Discover the adjusting process and its place in the accounting cycle
  • Recognize the proper accounting treatment for prepayments made
  • Recognize the proper accounting treatment for prepayments received
  • Recognize the proper accounting treatment for expenses accrued prior to payment
  • Recognize the proper accounting treatment for revenue earned prior to payment
Last updated/reviewed: March 18, 2024
43 Reviews (152 ratings)

Reviews

5
Anonymous Author
I've taken a number of Illumeo accounting courses, but this by far is the best one. Professor Slayter explains the concepts so well and walks you through the explanations with related T accounts and journal entries. When he explained how to distinguish between deferrals and accruals, he did so in a way that will stick with me. I appreciate that. Thank you! This course is worth the money I paid for my entire subscription, and I will be looking for more courses by him.

5
Member's Profile
Erik Slayter's presentations are among the best I've experienced. he does a wonderful job of really breaking down the details and providing great background. this presentation included a lot of exercises which are great for cementing the concepts. I really appreciate the worksheets he provides and the way he walks you though each problem

5
Anonymous Author
This was a very helpful course. I appreciated the conciseness and clarity of the explanations. It was beneficial to see the T-accounts and Journal Entries written out. That helps solidify in my mind what is going on in the accounting process.

5
Anonymous Author
Excellent review of Adjusting Journal Entries. I liked all the examples. I also liked how the instructor explained how missing an AJE can overstate or understate various accounts.

5
Anonymous Author
Very informative course with great examples and professor drives learning point home. This is a great course for anyone who wants to learn the adjusting process and journal entries!

5
Member's Profile
Really good foundational course, really enjoyed the instructor, threw me for a curveball a few times but I was able regain my bearings and credit a big gainer.

5
Member's Profile
I like Erik's hands on approach to teaching. Just like being in the classroom with a big white board. Great class. Thank you Erik and Illumeo. Larry

4
Member's Profile
Great quick course to review the basics of certain adjusting entries. Would highly recommend to those handling the close process for their company.

4
Anonymous Author
This course was a great refresher or beginning course. I especially like the workbook that helps to reinforce the concepts taught.

4
Anonymous Author
This is a great course for those new to accounting concepts, or for those who have forgotten what they learned in college.

4
Member's Profile
Basic examples but a good refresher. I liked how the content was laid out and the AJEs determined (good visuals).

5
Anonymous Author
This course was presented with in depth detail of terms, numerous examples with great step by step overviews.

5
Member's Profile
Excellent review of journal entries and their effect on accounts. Well done presentation with great examples

4
Anonymous Author
Very good basic course to help understand the closing process. Lecturer was on point and used good examples.

5
Anonymous Author
Very easy to follow instructor's examples using the T accounts he drew and the explanations he gives.

4
Member's Profile
Good course for catching up on basics for someone who has not done accounting for quite some time

4
Member's Profile
This course provided a nice refresher of the accrual process and it's good for beginners as well

5
Member's Profile
Good basic course on the adjusting process. Definitely for beginners to the concepts.

5
Anonymous Author
Great examples - easy to follow, especially the T- accounts. Helps to have a visual

5
Anonymous Author
Solid overview and refresh course of adjusting process concepts and journal entries

5
Member's Profile
This is a good review if you have been away from accounting for a long time.

4
Anonymous Author
Real world examples of adjustments required under accrual basis accounting.

5
Anonymous Author
Clear concise examples, explained in great detail hence easy to understand.

5
Member's Profile
Well-organized. Very helpful for anyone teaching financial accounting.

5
Anonymous Author
Some more animation will be useful. But a good reoetition of material.

5
Member's Profile
It was a good refresher's course. Emphasized key aspect of the topic

5
Anonymous Author
Great concise course with easy review. Would recommend to others.

3
Member's Profile
Very basic course. Concepts were explained with great clarity.

5
Anonymous Author
Good overall review of adjusting process. Great examples used.

Member's Profile
A good basic course that delivers the objectives stated.

5
Member's Profile
A good refresher course or for a non-financial manager.

4
Anonymous Author
Really helped to understand accrual based accounting.

4
Anonymous Author
Great basic review with lots of helpful examples.

4
Anonymous Author
Simple but complete review of basic concepts.

5
Anonymous Author
Fundamental, but a good refresher.

Anonymous Author
basic knowledge good review course

4
Member's Profile
very easy to follow. thanks

5
Member's Profile
Good review. Thanks!

4
Anonymous Author
Very good refresher.

4
Anonymous Author
Good, basic course.

4
Anonymous Author
Good review course.

4
Member's Profile
Good

4
Member's Profile
good

Prerequisites
Course Complexity: Foundational

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Questions and Answers(2 Questions)
Member's Profile

I just completed the course and have a question regarding the Review Questions.

The first question asks:
The balance in the office supplies account on March 1 was $13,600. Supplies purchased during March were $11,300. Supplies on hand at March 31 were $10,250. What is the amount to be used for the appropriate adjusting journal entry?

My answer is $13,600+11,300-used = $10,250. The amount used is $14,650

This was not an option. The quiz says the right answer is $10,250. I don't get it. Am I missing something?

Member's Profile

John-Thanks for pointing this out. You are absolutely correct; there was a typo on this quiz that hadn't been noticed previously. I've updated the answers to accurately reflect what you have correctly noted.
-Erik

Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Accounting Cycle: The Adjusting Process7:00
  The Matching Concept9:20
Examples of The Adjusting Process
  Example 1: Adjustment Journal Entry Process Dealing with Supplies and Rent12:11
  Example 2 : Adjustment Journal Entry Process Entry Process Dealing with Supplies and Rent8:57
  Example 3 : Adjustment Journal Entry Process Wages, Interest, and Depreciation 14:54
  Example 4 : Adjustment Journal Entry Process Dealing with Depreciation 12:54
CONTINUOUS PLAY
  The Adjusting Process Full Video1:05:15
SUPPORTING MATERIALS
  Notes Template: The Adjusting ProcessPDF
  Workbook: The Adjusting ProcessPDF
REVIEW & TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam