how do i do adjusting entries on a general journal
Thank you for using the Jiskha Homework Help Forum. The following site has general Accounting Advice:
http://www.lemoineandjames.com/gaap/73aje.html
To do adjusting entries on a general journal, you need to follow these steps:
1. Identify the accounts that require adjustment: Look for any expenses, revenues, assets, or liabilities that need to be adjusted to reflect their accurate balances.
2. Determine the type of adjustment: Consider whether the account balance needs to be increased or decreased to match the correct amount.
3. Calculate the adjustment amount: Determine the difference between the current balance and the correct balance for the account.
4. Identify the accounts to be debited and credited: Depending on the type of adjustment, select the appropriate accounts to debit and credit. Debit entries increase expenses and assets, while credit entries increase revenues and liabilities.
5. Record the adjusting entry in the general journal: Write the date of the adjustment, the accounts affected, and the adjustment amount. Make sure to include both debit and credit entries.
6. Post the adjusting entry to the general ledger: Transfer the adjusting entry from the general journal to the appropriate accounts in the general ledger.
7. Prepare a trial balance: After posting all adjusting entries, create a trial balance to ensure that the debits and credits balance.
Remember, it is always a good idea to consult your textbook or accounting resources for specific examples and guidelines, as the process may differ based on the accounting framework you are using. The link provided offers more comprehensive information on adjusting entries as per GAAP (Generally Accepted Accounting Principles).