HelpLesson #4
Adjusting Entries
By Laurie L. Swanson
Adjusting Entries
bring certain account 12/31/2010
UPDATE
balances up to date
at the end of the
accounting period.
Adjustments
Adjusting entries are required when
changes in certain accounts have not been
recorded in the accounting records.
Adjustments are
necessary for items
that have either
been deferred or
accrued.
Reason for Adjustments
It can be inefficient and costly to
account for certain types of
transactions on a daily basis.
Reason for Adjustments
An example of the inefficiency of recording certain
transactions follows:
POST
DATE ACCOUNT DEBIT CREDIT
REF
POST
DATE ACCOUNT DEBIT CREDIT
REF