Adjusting Entries: Deferral & Accrual
I. ACCRUAL ENTRIES:
Accrual entries: REVENUE FOR SERVICE OR
EXPENSES INCURRED but not yet paid Types of Expenses: Interest, Taxes, Salaries, Rent |
Journal Entry:
Expense Account Dr Liability Acct (payable) Cr |
II. DEFERRAL ENTRIES
Deferral entries record
PRE PAID EXPENSES: Expenses paid in cash & recorded in assets
before they are consumed (incl depreciation)
UNEARNED REVENUE: Cash received before services are performed
PRE PAID EXPENSES: Expenses paid in cash & recorded in assets
before they are consumed (incl depreciation)
UNEARNED REVENUE: Cash received before services are performed
Journal Entry:
Expense Dr
Asset Account Cr
Expense Dr
Asset Account Cr