This is a draft cheat sheet. It is a work in progress and is not finished yet.
|
|
|
Types of Adjustments
Adjustment Type |
Effect on Balance Sheet |
Effect on Income Statement |
Prepaid Expense |
CR. decrease asset |
DB. ^ Expense |
Unearned Revenues |
DB. decrease Liability |
CR. ^ Revenue |
Accrued Expenses |
CR. ^ Liability |
DB. ^ Expense |
Accrued Revenues |
DB. ^ Asset |
CR. ^ Revenue |
|
|
Entries
Prepaid (Deferred) Expenses |
Unearned (Deferred) Revenue |
Accrued Expenses |
Accrued Revenue |
DB. Expense CR. Asset |
DB. Liability CR. Revenue |
DB. Expense CR. Liability |
DB Asset CR. Revenue |
Increase Expense/ Decrease Asset |
Decrease Liability/ Increase Revenue |
Increase Liability/ Increase Expense |
Increase Asset/ Increase revenue |
|
