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So paano nga ba tayo dapat magsagot ng adjusting entries?
A THREAD
A THREAD
First, basa muna tayo ng maigi. Comprehension is key, mga bata. Also, remember na nag-aadjust tayo dahil sa Accrual Basis of Accounting and we already have balances in our trial balance. We adjust because unupdated yung nagawa nating balances.
So upon reading the problem, analyze the adjusting information. #1 Ask "Anong type ba ng adjustment ang tinutukoy nitong line item?"
(1) Accrual ba 'to? (2) Deferral/Prepayment ba 'to? (3) Estimate? (4) or Error lang?
(1) Accrual ba 'to? (2) Deferral/Prepayment ba 'to? (3) Estimate? (4) or Error lang?
Accruals
- our objective is recognize unrecorded/unrecognized expenses and income.
Question: "May recognizable income or expense ba tayo? Meron ba tayong performed service or consumed service/goods?
- our objective is recognize unrecorded/unrecognized expenses and income.
Question: "May recognizable income or expense ba tayo? Meron ba tayong performed service or consumed service/goods?
If may performed service to our customers, we should recognize income/revenue.
Dito ka lang sa part na 'to magtatanong kung may natanggap ka na bang pera. Kasi whether you like it or not, kung may naperform ka nang service, dapat may income ka nang i-record. So...
"MAY NATANGGAP KA BANG PERA?"
"MAY NATANGGAP KA BANG PERA?"
Ep sooow,
You have to make an entry as follows:
Cash xx
Revenue xx
You have to make an entry as follows:
Cash xx
Revenue xx
