Adjusting Entries – Adjusting Entry Example 3

The next one is adjusting entry number e and information about that entry is the following but during February used office space office stationary the cost of which was $240 how we record this transaction we use general journal and we have to include cost of that stationary into the expenses so we debit other expenses account and we have a decrease in stationary since we have youth less stationary in the activities of the business and we credit stationary account by showing increase in that.


And in the same manner as we record the other transactions during the accounting period here we also include a description of the transaction for further reference.  The next step is to post those items into the general ledger account.  We start from other expenses.  This account is used for the first time there were no entries from previous transactions and we post the amount from general journal to the debit side of this account.


In reference to the transaction is a free— which means that this is adjusting entry number three and stationary account.  You can see that stationary account was already impacted by one transaction, transaction number 3 which was recorded and posted during the accounting period and also closing balance was already calculated therefore we make a post of the adjusting entries after the closing balance was calculated.


And this is done by transferring $240 from general journal to the general ledger stationary account.  This was adjusting entry number three and in the next video they will be last adjusting entry we will be also recording it in the general journal and posting picture to the general ledger accounts.

This is the last adjusting entry.  Adjusting entry number 4 and here we have information that utility expenses for February amount to $190 and this amount will be paid in March so first of all what you call this transaction in the general journal we have expenses that incurred expenses $190 since this amount will be paid only next month we have an increase in accounts payable by $190 so accounts payable are credited.


And we include the description of this transaction.  A number of transaction is a 4 which means that this is the adjusting country number 4.  The next step is to post those items to the general ledger accounts are other expenses and this is adjusting entry number 3 and it was already impacted by the adjusting entry free and now it is adjusting entry 4.  And next one is to include the adjusting entry into accounts payable account.


You can see here that accounts payable account was already impacted a lot by bringing these transactions which were recorded during the accounting period and closing balance was already complete.  We post the adjusting entry after the closing balance and reference A4 which means that this is adjusting entry number 4.


So this was the final adjusting entry and next we will be preparing adjust the trial balance and in order to do that we will of course we will need to calculate the closing balances of the accounts after the adjusting entries are posted.

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