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Adjusting Entries Cheat Sheet (DRAFT) by

This is a draft cheat sheet. It is a work in progress and is not finished yet.


Adjust­ments Flow Chart


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


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