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
- Accounting Review: The Basics of Debits and Credits
- Transaction Analysis, T-Accounts, Debits and Credits, and Trial Balances
- Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow
- The Accounting Equation and Financial Statements
- Bank Reconciliations, Cash, and Internal Controls
- Accounts Receivable Training: Bad Debts
- Equipment and Depreciation
- Inventory Costing
- Purchase and Sale of Inventory
- The Adjusting Process
- 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)
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)
Erik SlayterAccounting Professor at Cal Poly
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?
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