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Essay text:
Therefore adjusting entries are needed at the end of each accounting period to make certain that appropriate amounts of revenue and expenses are reported in the company's income statement.
? What are the types of adjusting entries:
1. converting assets to expenses
a. Go to page 145 & show students Overnight unadjusted trial balance.Explain to them why it is unadjusted.
b. Give examples on prepaid expenses, shop supplies, insurance policies. P 146-147
c. Explain the concept of depreciation and accumulated depreciation-P148-150
2. Converting Liabilities to revenue-Explain the concept of unearned revenue or deferred revenue...
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