Adjusting Journal Entries Prepaid Expenses: Transaction Description
Journal Entry Title
Debit
Supplies: Beginning supplies plus any purchases minus supplies on hand
Supplies Expense Supplies
XXX
Insurance: Original cost divided by number of months paid for
Insurance Expense Prepaid Insurance
XXX
Credit
XXX
XXX
Depreciation Expense XXX Depreciation: Based on type of depreciation method used Accumulated Depreciation-Asset title XXX You pay for in advance of usage these assets. Each is divided by the period in which the asset will be used up.
Unearned Revenues: Transaction Description
Journal Entry Title
Debit
Credit
XXX Advance payments: ing for any Unearned Service Revenue amount earned during the fiscal period Service Revenue XXX Other types of revenue s could be titled: Unearned Sales Revenue, Unearned Subscription Revenue, and Unearned Ticket Revenues. The number of products or services sold only limits the possibilities for titles.
Accrued Revenues: Transaction Description
Journal Entry Title
Revenues earned but not yet billed at the s Receivable end of the fiscal period Service Revenue
Debit
Credit
XXX XXX
Accrued Expenses:
Accrued Interest: Expense incurred but not yet due to be paid
Journal Entry Title Interest Expense Interest Payable
Accrued Salaries: Salaries earned but not due to be paid until next payday occurs
Salaries Expense Salaries Payable
Transaction Description
MJC Revised 10-2011
Debit XXX
Credit XXX
XXX XXX
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